Transfer of property to family in Qld

[JASA]

I have an investment property in Cairns which I would like to transfer to my Daughter. I rented out the property immediately on buying it but used it for ~12 months as a PPOR and have no other PPOR since that time. (have lived in my other investment properties since) I know I will pay some CGT on this property, but is there some tax benefit in Qld when property is transferred from parent to child? Can anyone direct me to a thread that highlights the tax and legal issues?
Thanks,
JASA

 

[alexlee]

I have an investment property in Cairns which I would like to transfer to my Daughter. I rented out the property immediately on buying it but used it for ~12 months as a PPOR and have no other PPOR since that time. (have lived in my other investment properties since) I know I will pay some CGT on this property, but is there some tax benefit in Qld when property is transferred from parent to child? Can anyone direct me to a thread that highlights the tax and legal issues?
Thanks,
JASA

If you've been living in your other IPs since, those become your PPOR, since I'm assuming you didn't pay rent?

 

[JASA]

Confused!

If you've been living in your other IPs since, those become your PPOR, since I'm assuming you didn't pay rent?

Thanks for your reply but I am really confused now! Do investment properties automatically become the PPOR if you reside in them for short periods? I thought that I could nominate one property as my PPOR? The other investment properties that I lived in for short periods will not be sold for some time. If and when I do sell, will not be claiming them as a PPOR.

 

[alexlee]

Thanks for your reply but I am really confused now! Do investment properties automatically become the PPOR if you reside in them for short periods? I thought that I could nominate one property as my PPOR? The other investment properties that I lived in for short periods will not be sold for some time. If and when I do sell, will not be claiming them as a PPOR.

The thing is, if you live in a property and you're not paying rent, it can't really be considered an IP.

 

[JASA]

The thing is, if you live in a property and you're not paying rent, it can't really be considered an IP.

I understand what you are saying but I have two apartments that I have lived in at various times that are mainly rented out. I am presently living in accomodation provided by my employer whilst managing a retirement village. The house in Cairns is the most expensive property I own. I believed that I could claim part exemption on CGT for the house in Cairns, as long as I do not claim an exemption for another PPOR in the same year. My plan is to transfer the property to my daughter or sell the house to my daughter at a slightly lower than market price. Not sure which would be the best option?

 

[ozmale42]

I have an investment property in Cairns which I would like to transfer to my Daughter. I rented out the property immediately on buying it but used it for ~12 months as a PPOR and have no other PPOR since that time. (have lived in my other investment properties since) I know I will pay some CGT on this property, but is there some tax benefit in Qld when property is transferred from parent to child? Can anyone direct me to a thread that highlights the tax and legal issues?
Thanks,
JASA

There are no special tax concessions when transferring a property from a parent to a child, unless it is acquired after your death from your estate in which case CGT will only be applied once the child sells the property but calculated from the time your bought it , assuming you bought it after September 1985

 

[Ian (WA)]

JASA & All,

If you have a copy, or can get a copy of the January API magazine, Rob Balanda has penned an article which might well be worth your while reading. It's on Page 72 and is all about "The Property Gift".

In a nutshell, it may be a really good option for you to consider a trust arrangement as he highlights.

Not sure of your experience with trusts, but they aren't as daunting or complicated as some would have you believe.

I won't reproduce Robs' article here in case of copyright infringement.

Regards,

Ian.

 

[Ian (WA)]

Sorry JASA got distracted by other posts and meant to add to this earlier.

As the unit is in your name already you may not be able to move it into a trust withjout triggering a stamp duty / capital gains event. However, if you can drive towards re-establishing the unit as your PPOR again, then you may be able to sell it into a trust arrangement with a nominal company name as the Trustee for your daughter to control as the sole director & shareholder....notown. If it is clearly your PPOR on sale, then you shouldn't be hit with CGT issues.

Please don't take any of this as gospel, i'm just thinking out loud. Please speak with an accountant formally about this as i'm sure the info provided here will be very limited and not worth basing your decisions on.

Cheers.