Questions about adding new name to a title

[Trojan]

A friend recently got married and is planning to add his new partner to the title of an investment property and move into the the property and turn it into his PPOR (he doesn't have any other properties).

My understanding is:
1) he will need to pay stamp duty for the title change
2) it will trigger a capital gains tax event and CGT will be payable this financial year
3) he needs to get a proper valuation done to determine the amount of stamp duty and CGT payable.
4) if he moves in immediately after the title change and stays there till he sells it, he won't need to pay any further capital gains in the future

Is this all correct?
Thanks in advance.

 

[Terry_w]

Not correct,

Most of the answers are "it depends"

1. Depends on the state. In Vic no, in NSW - no deepnding how it is done. In most other states it could be exempt as well depending on how it is done.
2. Probably, but depends if he ever lived in it.
3. Yes
4. No. He will only be transferring part of the spouse. He will still have the original part ownership and this would be subject to CGT when he sells.

A new loan will also be needed.

 

[Trojan]

Thanks for quick reply Terry.

1. Property is in NSW
2. No he has never lived in it before.
3. Thanks
4. Does this mean this financial year, he only pays CGT on the component he transfers to his spouse and leaving his portion to be calculated and paid (pro rata) when he sells in the future?

 

[Terry_w]

1. get advise on how to do it without stamp duty
2. CGT in year of transfer
3.
4. Yes. CGT on the transferred portion. 2nd portion will incur CGT when he transfers this and based on a time held basis.

tell him to keep all receipts for ever.. even while living there.

 

[thatbum]

I have a question - why would your friend want to do this in the first place?