Changing Joint Tenants

[john69_24]

My wife and I have purchased a property in WA and have signed up as Joint Tenants for it. She now no longer wants to work and we wish to change to Tenants in Common (I think they are the correct terms).

We are being told that this will constitute a sale and we will be charged stamp duty. Is this the only way to do this? Even if it is, it will work out OK from a tax perspective, but the $2K does hurt as it really is wasted money.

Any advice?

 

[Luke]

Worth checking out

It would be good to clarify with the relevant state govt. area if there are any exemptions for stamp duty between partners. For example, the situation in Victoria is that any transfer of property or shares between married partners can avoid stamp duty.

I believe that's the case for some other states also, but cannot comment on WA. But if it's the case, that's some return on a single phone call!

Good luck,
Luke

 

[Robyne]

Joint Tennancy

Although only a lowly law student, my understanding is that you would not need to effect a sale to get tennancy in common, since you both already own the property. A simple declaration by you both of your intention to own the property in this way may be all that is required but the subject called real property law was a long time ago and I am really not sure about that. You really do need to see a solicitor about this matter because I do remember that it is easy to get it wrong so make sure you get the correct advice it tennancy in common is important to you.

 

[Terry_w]

My wife and I have purchased a property in WA and have signed up as Joint Tenants for it. She now no longer wants to work and we wish to change to Tenants in Common (I think they are the correct terms).

We are being told that this will constitute a sale and we will be charged stamp duty. Is this the only way to do this? Even if it is, it will work out OK from a tax perspective, but the $2K does hurt as it really is wasted money.

Any advice?

Generally no stamp duty or CGT if changing from JT to TIC in equal shares.