Convert PPOR to IP and release equity

This might seem obvious, but I bought my wife's unit.

We both met at a later age, I had some cash from selling a previous property, she had a 160k mortgage on her unit, so after we got married we had it valued and I paid her $360k. 2 years later we moved to our freshly built new house and the unit became an IP.

And due to our circumstances and after advice from my solicitor we did a "Natural love and affection" transfer and paid no stamp duty.
 
This might seem obvious, but I bought my wife's unit.

We both met at a later age, I had some cash from selling a previous property, she had a 160k mortgage on her unit, so after we got married we had it valued and I paid her $360k. 2 years later we moved to our freshly built new house and the unit became an IP.

And due to our circumstances and after advice from my solicitor we did a "Natural love and affection" transfer and paid no stamp duty.

Nice. But what is your question?
 
ok libs, but did you really release equity because you paid your spouse for the property. You could have used your $360k for your new PPOR and saved non deductible interest??
 
Oh... I see what you mean. I forgot an important part of the story. DUH. I got a loan for 360k and we turned a non-deductible 160k loan into a deductible 360k loan.
 
Oh... I see what you mean. I forgot an important part of the story. DUH. I got a loan for 360k and we turned a non-deductible 160k loan into a deductible 360k loan.

Libs I thought you said it was purchased for no consideration. What did you borrow the money for in that case.

I think your loan interest is not deductible. Did u get legal and tax advise before doing this?
 
I've had 2 accountants and my solicitor varify that it was all above board. But thanks for the warning, I'll double check everything!!
 
I've had 2 accountants and my solicitor varify that it was all above board. But thanks for the warning, I'll double check everything!!

But what did you borrow for if there was not consideration for the transfer?

Was the property in vic? If so you could hace transferred at full market rates without stamp duty and thereby be able to claim the interest.
 
Trying to follow the ball also also

This might seem obvious, but I bought my wife's unit.

We both met at a later age, I had some cash from selling a previous property, she had a 160k mortgage on her unit, so after we got married we had it valued and I paid her $360k. you purchased it off her? Offer & Acceptance, settlement, transfer yada yada?

2 years later we moved to our freshly built new house and the unit became an IP. PPoR unit now turned into IP

And due to our circumstances and after advice from my solicitor we did a "Natural love and affection" transfer and paid no stamp duty. So you hadn't purchased it off her earlier?
 
As usual there will be heaps more facts missing and possibly some of them confused so no point even trying to interpret what has happened. If the advice has been provided in writing by a solicitor and accountant then he should be able to rely on the safe harbour provisions and if things arent correct make a claim against their pi insurance. Those two professionals will have all the facts and have obviously made their judgements with such.
 
As usual there will be heaps more facts missing and possibly some of them confused so no point even trying to interpret what has happened. If the advice has been provided in writing by a solicitor and accountant then he should be able to rely on the safe harbour provisions and if things arent correct make a claim against their pi insurance. Those two professionals will have all the facts and have obviously made their judgements with such.

Understanding it may help others faced with a similar scenario?
 
Interest on borrowings for a gift is not deductible. A transfer without consider is a gift. Careful planning could have avoided this.
 
Top