Should we change loan from both names to one



From: Anonymous

My husband's income is a lot higher than mine -hence he pays far more tax. Our 1st investment property was put in both our names which we have since learn't should have been just in his for maximising negative gearing. If we change the loan to his name only it will cost us approx $7000 in capital gains tax. Is it worth changing it now for the long term benefit?
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Reply: 1
From: Duncan M

On 4/17/01 4:35:00 PM, Anonymous wrote:

>My husband's income is a lot
>higher than mine -hence he
>pays far more tax. Our 1st
>investment property..

The answer could be dependent on how many properties you have, you say "1st".. do you have more? Other strategies can come into play if you have more than a handful..

If its your only one.. you need to look at the long term aim, if you intend to sell at some point dont forget that you'll pay more Capital Gains Tax on the sale.

Simply transferring just the Loan wont be enough, the title needs to go into his name as well, in addition to the CGT you'll also pay Stamp Duty on the transfer as well as half of the CGT and the new Loan Costs..


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Reply: 2
From: Robert Forward

Check with the ATO website.

We were talking about this the other night on the chat line and found that you can transfer title between partners in a relationship without needing to pay stamp duty and thus no CGT either.

Please don't take my word for gospel though. Seek out the right advise from an accountant to you queries as well as looking at the ATO website.

I will try and find the right section in the ATO website and put the link up.

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Reply: 2.1
From: Pierre .

We did this with a property late last year - changed from two to one, but it was before settlement. There is some new tax law that allows you to transfer without Stamp Duty, but I don't know the details. My solicitor came up with the information. Thats what he gets paid for.

Sorry I don't know the details - check with your solicitor.

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