A friend asked for an advice.
All of this friend's investment properties are in joint names with partner.
Less than 12 months ago they bought another property in joint name.
They now decide to have this property titled in one name. That is in a partner's name. As this friend will have the title transfered to partner name, no CGT nor CG Lose expected.
To transfer the title, it will cost them an extra half of the stamp duty which were paid when purchased.
The cost of the stamp duty that would need a ramp up is just under $7000.00
By doing this, they will then be able to avoid land tax for 3500/year and counting.
Once this property transfered, they will still have an option to purchase another property in friend's name.
Having the property in this friend's name only, a land tax will be severely lesser than having properties in joint name.
Rental income or servicability is not an issue at all from what i was told.
So advice is sought because they think we will be hit with more land tax if the names in the title stay the same. they will also expect an increase in land tax if they purchase another property.
If this plan is reasonable in your opinion, should the transfer of name be done immediately or should we wait for 12 months to pass before take action?
thanks in advance
t
All of this friend's investment properties are in joint names with partner.
Less than 12 months ago they bought another property in joint name.
They now decide to have this property titled in one name. That is in a partner's name. As this friend will have the title transfered to partner name, no CGT nor CG Lose expected.
To transfer the title, it will cost them an extra half of the stamp duty which were paid when purchased.
The cost of the stamp duty that would need a ramp up is just under $7000.00
By doing this, they will then be able to avoid land tax for 3500/year and counting.
Once this property transfered, they will still have an option to purchase another property in friend's name.
Having the property in this friend's name only, a land tax will be severely lesser than having properties in joint name.
Rental income or servicability is not an issue at all from what i was told.
So advice is sought because they think we will be hit with more land tax if the names in the title stay the same. they will also expect an increase in land tax if they purchase another property.
If this plan is reasonable in your opinion, should the transfer of name be done immediately or should we wait for 12 months to pass before take action?
thanks in advance
t
