Spousal Sale

[jud79]

Hi

Any thoughts on the positive or negative of a spousal sale for our situation.
We would like to move into our IP on the gold coast. We have a unit in Tannum Sands which is our PPOR have it on the market at the moment because we would like to lower our non-deductible debt once we move into IP.
Here are some figures

IP on Gold Coast mortgage $664,000
Value $730,000
Held in both names

PPOR in Tannum Sands mortgage $90,000
Value $335,000
Held only in partners name who is not working due to little ones
This would be CGT exempt if sold
Potential rent $400/week

If my partner sold it from her name into mine stamp duty would roughly be $10,000.
Any thoughts on this structure????

Thanks

 

[Aaron_C]

Wouldn't it be better just to sell the Tannum Sands property, put the net proceeds directly into the Gold Coast loan and then redraw it later for investment purposes?

 

[Truly Exotic]

I'd sell my spouse if I had one

Maybe that's why I don't have one

 

[pinkboy]

I'd sell my spouse if I had one

Maybe that's why I don't have one

Hmmmmm, not such an uncanny idea..............

pinkboy

 

[Rolf Latham]

Hi

Any thoughts on the positive or negative of a spousal sale for our situation.
We would like to move into our IP on the gold coast. We have a unit in Tannum Sands which is our PPOR have it on the market at the moment because we would like to lower our non-deductible debt once we move into IP.
Here are some figures

IP on Gold Coast mortgage $664,000
Value $730,000
Held in both names

PPOR in Tannum Sands mortgage $90,000
Value $335,000
Held only in partners name who is not working due to little ones
This would be CGT exempt if sold
Potential rent $400/week

If my partner sold it from her name into mine stamp duty would roughly be $10,000.
Any thoughts on this structure????

Thanks

a lot depends on tax brackets?
t
arolf

 

[jud79]

Selling was our first choice although it has been on the market for a while and we were looking at other options.

Tax bracket is $80,000 - $180,000

Ta

 

[Rolf Latham]

will take a little while to claw back the costs, but if you believe the asset is a good one to hold, and the market isnt great, then its a likley option.

if the taxable income was sub 50, it would be very much less attractive

Do cashflow analysis and see what the payback on the 12 or so k in fees is

ta
rolf

 

[jud79]

My accountant seems to think 2 years 3 years at most to recoup costs..

 

[Terry_w]

Just make sure this do this transaction correctly and you wouldn't want to go through the motions (so to speak) and pay the stamp duty and then have the interest denied.