PPOR title transfer

[ali]

Hi all, could anybody please tell me if there is costs (eg stamp duty) associated with transferring the title of our PPOR from joint names (my husband and I) to only my name in NSW? We want to convert it to an IP down the track and want it in my name for two reasons: first to avoid land tax and second because it will be positively geared and I earn $0.

Thanks, Ali

 

[marg4000]

second because it will be positively geared and I earn $0.

Thanks, Ali

Not sure what you mean here, you can't negatively gear a PPOR so can't see what gearing has to do with it?
Marg

 

[Propertunity]

Not sure what you mean here, you can't negatively gear a PPOR so can't see what gearing has to do with it?
Marg

She wants to convert it to an IP and when that happens it will be positively geared but she's hoping to pay no tax on that income as she's not working.

 

[ali]

She wants to convert it to an IP and when that happens it will be positively geared but she's hoping to pay no tax on that income as she's not working.

Yep: it doesn't have enough debt on it to be negatively geared.
Cheers

 

[Ricky]

I beleive the answer to your question is no. (not without cost).
Otherwise we could all be playing pass the parcel .

 

[Propertunity]

I beleive the answer to your question is no. (not without cost).

You may be right.....but it would be worth checking with a solicitor. In some states this can happen under a "love and affection" clause free of stamps. Not sure about NSW though.

 

[ali]

You may be right.....but it would be worth checking with a solicitor. In some states this can happen under a "love and affection" clause free of stamps. Not sure about NSW though.

Sounds like my sort of clause. Thanks for the info, Propertunity. Will check with our solicitor but in the meantime, can anyone else shed light?
Cheers, Ali

 

[jrc77]

I have seen it done in the past in NSW - paid stamp duty on 50% of the valuation of the place (as 50% was being "sold" from husband to wife). Wife borrowed funds to buy out husband - so debt equal to half the valuation + stamp duty had tax deductable interest.

Regards,

Jason

 

[Terryw]

Stamp duty would be calculated on the value of the amount transferred.

In NSW there is no exemptions for transfers like this. There is an exemption for one spouse being added to the title of a main residence (s62 Duties Act), but not coming off title.

Also you would need to borrow to buy out the share of your partner if you wanted to claim a deduction.

 

[ali]

Hi Terryw, much appreciated. I assumed that would be the case but was hoping for something like Propertunity's "love and affection" clause in NSW.
Cheers, Ali