Giving property as gift to parents

[Iggy_Type_R]

Hi,

I would like to give my 2 properties (in my personal name) to my parents for free. Can anyone help with such a transfer? Is there a tax implication or can there be a workaround?

Thank you

Properties are worth around 1.1m together with about 65% LVR on them. New loans would need to be drawn up on that too.

 

[Rickardo]

Hi Iggy,

Gifts like that will incur both capital gains tax and stamp duty. Even if there is no consideration given by your parents, for taxation purpose you will be seen as disposing of the assets at their current market value.

 

[MasterInvestor]

That will be a lot of stamp duty and CGT to pay!

Why do you want to gift?

If you are going bankrupt, then the transfers can be overturned if done within 6 months of bankruptcy or if you are trying to defeat creditors.

If for other reasons, then it may be better if you just kept them and let the parents access them. - maybe rent free??

It could also affect their pensions.

MI