Australian Money Forum

[timbo]

Together my wife and I own an investment unit, which is negatively geared. My wife has now stopped working and in order to maximise tax deductions, I thought I should put the property in my name only. How do I go about this, and who do I need to talk to? By the way, the investment property is in Victoria, in case that makes a difference.

Also, we lived in the property for the first 6 months that we owned it (2 years ago). I have heard that, should the transfer involve selling the unit, Capital Gains Tax will not be payable, as CGT is deffered for the first 5 years after vacating a primary residence. Can anyone confirm this?

[Miller]

Hi timbo,

I doubt anyone would dare to advise you on such a specific case.

It sounds trivial but you probably need to speak to a professional.

Even if you get a free “advice” you probably won't want to relay on it…

Together my wife and I own an investment unit, which is negatively geared. My wife has now stopped working and in order to maximise tax deductions, I thought I should put the property in my name only. How do I go about this, and who do I need to talk to? By the way, the investment property is in Victoria, in case that makes a difference.

Also, we lived in the property for the first 6 months that we owned it (2 years ago). I have heard that, should the transfer involve selling the unit, Capital Gains Tax will not be payable, as CGT is deffered for the first 5 years after vacating a primary residence. Can anyone confirm this?

[geoffmerritt]

Miller is quite right in what he says about getting professional advice.....

There is a window of 6 years that you can move from your principle place of residence to another, being a rental or an owned property. How ever you can only have 1 principle place of residence at any one time.

Transferring your wifes share to your name will also trigger a capital gain event on the disposal of your wifes interest.

True you will have greater deductions now, also upon the sale of the property , the capital gain will be in your name.

Hope this gives you some help, please go and speak to a professional regarding this matter