Hi to all. Been doing some relevant reading through old topics, and have a situation of PPOR and stamp duty to spouse i want to clarify.
Firstly, built 2 units about 5 years ago, while I was single. Lived in one for a year and rented the other. Got married 3 years ago and moved back into the other unit with my wife. My wife isnt on the title. I am considering selling the unit we currently live in to my wife for the market value, thus utilising the spouse sale - stamp duty exemption.
Also I am considering buying a bigger house for us only with my name on the title, with funds from the sale proceeds of my unit sale from my wife. (This way I can lower my non-deductible loan) Now I understand that as I live in this unit currently with my wife, when I sell to her, effectively she has lived in it too, so when she sells it later on down the track, she might avoid CGT on sale depending on when she sells ie. 6 year rule? But i wonder if she would be exempt since her name wasnt on the title when she lived in it. If she needs to live in it while the owner, is 3 months adequate?
The reason I want to sell the unit we are currently live in is beacuse the other unit I own (which is rented now) I have lived in at the start 5 years ago, so I might be exempt from CGT if i decide to sell it later.
In terms of PPOR, i am hoping that I sell unit 1 to my wife for market price, she gives me the funds to use in new home purchase, and therefore she doesnt pay stamp duty and also I dont pay CGT since we lived in it. But then she might have to pay CGT when she sells in the future since she hasnt lived in it as a owner.
But for unit 2, which i still own and have lived in and is now rented, if I decide to sell that too later on to anyone, will I be CGT exempt, since I can claim that as my residence even though I live somewhere else?
Am I correct (sorry if its a bit confusing)?
Firstly, built 2 units about 5 years ago, while I was single. Lived in one for a year and rented the other. Got married 3 years ago and moved back into the other unit with my wife. My wife isnt on the title. I am considering selling the unit we currently live in to my wife for the market value, thus utilising the spouse sale - stamp duty exemption.
Also I am considering buying a bigger house for us only with my name on the title, with funds from the sale proceeds of my unit sale from my wife. (This way I can lower my non-deductible loan) Now I understand that as I live in this unit currently with my wife, when I sell to her, effectively she has lived in it too, so when she sells it later on down the track, she might avoid CGT on sale depending on when she sells ie. 6 year rule? But i wonder if she would be exempt since her name wasnt on the title when she lived in it. If she needs to live in it while the owner, is 3 months adequate?
The reason I want to sell the unit we are currently live in is beacuse the other unit I own (which is rented now) I have lived in at the start 5 years ago, so I might be exempt from CGT if i decide to sell it later.
In terms of PPOR, i am hoping that I sell unit 1 to my wife for market price, she gives me the funds to use in new home purchase, and therefore she doesnt pay stamp duty and also I dont pay CGT since we lived in it. But then she might have to pay CGT when she sells in the future since she hasnt lived in it as a owner.
But for unit 2, which i still own and have lived in and is now rented, if I decide to sell that too later on to anyone, will I be CGT exempt, since I can claim that as my residence even though I live somewhere else?
Am I correct (sorry if its a bit confusing)?
