Removing spouse from Title

I would like to know how do I go about removing my wife from the Title of our investment property and would this be costly. This is to make the IP as tax effective as possible. Currently the IP is 50/50 owned but as she is not working it would be better off in just my name.

Thanks
 
You will need a conveyancer / solicitor to do the title bit. This should be cheaper than normal - you only want to change the names - no searches required.

The trick is the transfer can trigger stamp duty. You haven't indicated where you are (hint - a state / capital city would help...)

I know in Vic you can do a stat dec and avoid the duty on transfer between spouses. Not sure on other states.

Also, the loans could have a caveat on the property. May need to check with the bank on their point of view, unless the debt is already in your name only.

Regards,

Simon.
 
Thanks Simon, and yes I should've mentioned that I'm in Victoria.
Now a follow-up question - If I do go ahead and do this I can only claim from the time that I've taken 100% ownership of the property, is this correct? For example if I took ownership in April I can only claim half of the interest on the loan up till April and then April to June use the full amount to work out my tax credit.

Thanks.
 
Bert,

You're spot on. You can only claim 100% when it really is 100% yours....

Hmm... not too sure about that CGT thing.... That's a worry. No-one told me when I did it, and I haven't got a bill for it yet... Maybe I was lucky??

Hmm, check with accountant or deafult to Dale's knowledge. Hard one that. Could depend on if money changes hands vs just having name removed (no Cap Gain, no tax !). Any CGT would (I think) have to be only on wifes half of the property.

Could be time to see a professional.

Cheerio

Simon.
 
Originally posted by sbe
Hmm... not too sure about that CGT thing.... That's a worry. No-one told me when I did it, and I haven't got a bill for it yet... Maybe I was lucky??

Hmm, check with accountant or deafult to Dale's knowledge. Hard one that. Could depend on if money changes hands vs just having name removed (no Cap Gain, no tax !). Any CGT would (I think) have to be only on wifes half of the property.

Could be time to see a professional.

Cheerio

Simon.

HI

The spouse who disposes, or is deemed to have disposed of their share of the house is subject to CGT. The tax office will use the market value is the disposal price and yes, it is only their 1/2 share that is taxable. So, regardless of whether money changes hands, there is CGT.

A client of mine recently got some very incompetent advice from a solicitor on this very subject and even he had to admit he was wrong (boy, I bet that was hard!) when confronted with the facts.

Sorry, but, there is no room to ove on this issue.

Dale
 
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