Ownership issues gay couples

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From: James Hardy


Can I buy a property and rent it to my gay spouse?

Just checking as the law won't let us share income for tax purposes ect.

Any one with ideas or have been in a similar situation?
 
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Reply: 1
From: Dale Gatherum-Goss


Hi James

I don't see why not providing you keep the rent at fair market values and document everything. You may also wish to consider the effect of renting the house on CGT before doing this though. It should not be an issue if you plan properly, but, be careful.

Dale
 
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Reply: 1.1
From: Paul Zagoridis


You may want to rent it for more than a two year lease (at market rental with appropriate discount for the long lease).

Your spouse can then lodge a caveat on the title to protect his equitable interest.

This would also allow clearer transition of assets in the event you pre-decease him. I am out of touch with issues in the gay community re recognising gay marriages. Hopefully the law has caught up with community practises there.

You really should discuss it with a lawyer and accountant who understand the issues.

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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Reply: 2
From: Simon St John


Hi James,

Great question! My partner and I are discussing this, so it's a timely question for us.

What State are you in? Victoria has just introduced new Gay law reforms which give gay couples similar rights as straight defactos.

This may have some implications for a spouses claim over your assets.

I was unclear whether you were posing a scenario where you were also living in the property with your spouse?

Cheers, Simon

PS: A question for Dale - if owned in a trust, the trust can rent to a spouse and also give the asset protection from the spouse viz the new Victorian laws?
 
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Reply: 2.1
From: Dale Gatherum-Goss


Hi Simon!

Not sure of the new laws and how they will work. However, a trust is not normally immune from the family law courts.

yes, you can use a trust to rent to a spouse though. Again, be careful of losing the CGT exemption

Dale
 
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Reply: 2.1.1
From: Simon St John


Hi Dale

Do you ever sleep?!

I have a booklet on the new laws I'll pop in the mail for you tomorrow.

Cheers, Simon
 
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Reply: 2.1.1.1
From: Dale Gatherum-Goss


Hi Simon

That would be great, thank you. As for sleep, can you remind me what that tastes like? I can't remember eating that lately.

:->>

Have fun

Dale
 
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Reply: 2.1.1.1.1
From: James Hardy


Thanks everyone for you input. Amazed at so many replies in just a day or two.

I'm only just getting into this having read Jan's book for the first time last week but ready to invest like yesterday. VERY EXCITED and want to get into this big time!

So many many questions!

We are in Victoria and I understand that property can now be simply transfered on the basis of love and this applies equally to gay couples, (about f'ing time!)

How ever the question relates more to to Queensland.

Current situation is:
We have a great little house in Prahran and are about to buy an investment property.

Then early next year plan to move to Queensland, and rent out current home in Prahran.

Instead of buying in Queensland we will rent and buy another investment property. By doing this we will free up about 10k as the rent in Queensland is much cheaper than Melbourne. This 10k should enable us to buy a further IP within a year from now.

I keep reading about how idealy you should buy a house and rent it to a good friend and you should rent the house they buy.

Just playing around with how this might work in our favour as the rest of Australia, especially Queensland (and Howard) won't give us equal rights as a couple.

I would guess that if I but the house in my name I could rent it to my partner Jack, however the law would not let me live in the house and I would require another address as a residence, such as with my parents?????!!
 
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