Transfer of PPOR to Spouse (WA)

Hi All

Our PPOR is in my name currently in WA. We rented it out in Jan 10 (its our only property) and we are renting in QLD. We got married in Nov 09.

Problem is its positively geared and as its in my name am I liable for the 100% of the tax due?

Her income is significantly lower than mine and we are about to have a baby so she will become a dependent as well later this year.

Whats the best way around it? Can i transfer it to my wife and use her tax free thresholds?

Thanks!
 
Yes you can, but you will be up for stamp duty unless there is an exemption.

What you need to consider also is that if you are confident the house is going to increase in value, then subject to it meeting the requirements of PPOR exemption ie you moved in as soon as possible after settlement etc, while it is in your name it will continue to be exempt from CGT until such time as you and your wife acquire another PPOR.

So the number of years to breakeven on the transfer to your wife will be:

Saving on your marginal tax rate less tax paid by your wife because of the transfer and the number of years it takes for those savings to cover the stamp duty.

Also don't forget your depreciation schedule, that might help reduce your taxable profit as well.
 
Another point to consider if you transfer property into your wife's name is that when you do start a family your part A & B family benefits will be effected and may negate any income tax savings.
 
Another point to consider if you transfer property into your wife's name is that when you do start a family your part A & B family benefits will be effected and may negate any income tax savings.

Thanks JRC for the note, good to know on the CGT too.

Am calling OSR now to ask if there is an exemption for "love and affection". If there is Stamp Duty then I think it wont really be worth it.

On FTB-A and B I dont think we qualify for these regardless of the tax structure really. Will check with my accountant next month too.
 
Seems WA is exempt when transferring to Joint Tenants as Spouses. YAY :D

50% is better than nothing.

Now to check with the Bank
 
Yep, one of them is calculated on family income, but the other part will be based on your wife's income.
We recently upgraded our ppor and decided to keep old house as a rental.
Rental is in wife's name, and so is it's income.
Due to the weird way Family Assistance calculates "income", she now no longer qualifies for any assistance.
If, however, rental was in my name, she would still qualify because her income would be nil.
 
Due to the weird way Family Assistance calculates "income", she now no longer qualifies for any assistance.

yeh raised this point before - if you lose $1000 they say you have made $2000. only a bureaucrat could dream up that little pearler
 
Yep, one of them is calculated on family income, but the other part will be based on your wife's income.
We recently upgraded our ppor and decided to keep old house as a rental.
Rental is in wife's name, and so is it's income.
Due to the weird way Family Assistance calculates "income", she now no longer qualifies for any assistance.
If, however, rental was in my name, she would still qualify because her income would be nil.

Thanks - FTB-A is on Family Income - including mine (cap of $101,045pa, and FTB-B is on my income which cant be above $150k pa. It will probably need some "re-structuring" to qualify for either!
 
Why - its still a PPOR

Sorry - reread your situation. If you haven't purchased another house to live in, then you should be exempt. But it may make it a CGT asset for your wife as she's not living there and it won't be her PPOR. Still think that's worth checking if it could potentially be an issue.
 
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