Selling to spouse

[Nemo30]

My brother bought a property a decade ago prior to getting married. He has pretty much paid it off. It is in his name only.

Brother and sister in law want to upgrade and buy a new PPOR. Current PPOR will become IP.

Can my brother sell the property to his wife to make the interest deductible? I know you can do something like that in Victoria - does it work in other states?

Property is in Canberra.

 

[Rolf Latham]

Hi Nemo

a spousal sale or sell to a unit trust can be used possibly to regear that property

Obviously a lot depends on personal and specific circumstances which we don't know much about.

Typically in Victoria there is a "love and devotion" portion of the Stamp duties act that allows you to do a transfer to a spouse with out significant stamp duty cost.

Even with significant stamp duty costs sometimes the exercise is worth doing if you are going to hold on property.

there have been some recent threats that you may be able to transfer without significant stamp duty impost depending upon the state and 1 million other things.

See CoastyMike recent post on this rather exciting development

The finance side is generally relatively simple if you know what you doing, and most bankers or brokers should be able to put together with the guidance and blessing of your accountant.

as always, look to the long term future 10 to 15 years and work backwards from that.

Thanks

Rolf

 

[Nemo30]

Thanks Rolf - greatly appreciate the information.