I have bought some shares last week and seeing if transferring them to my wife will trigger any cgt.
The share price is the same price today (example I bought them at $10 each (total $10m) and still $10 each).
Based on the same price, if I put the consideration price down as $10k being today’s marker price, would I pay no cgt (as no increase or gain) and she only pays cgt for any future gains over $10k?
Eg the shares go up to $20k in the future, she’ll pay $10k worth of cgt?
Cheers
Hi, it's me your wife.
You want to transfer 10m of shares to you wife for 10k?! Wtf?
If they haven’t increased transfer them at same rate or just sell them and she can buy them in a brokerage again, and no issue, sounds like your up to dodgy shit to be honest or bored.
This is dodgy AF
$10 each (total $10m) and still $10 each
You only pay CGT on gains. No gains, no tax.
Gift them at a spot price as close possible to the initial spot price.
Spot them gains
It's the best game in town.
$10m in shares yet asks Ozbargain for free advice?
I refer all my multimillion dollar decisions to Internet forums. If it's $1-5m, I go to Whirlpool. $5-15m to OzBargain. And $15-100m, Reddit. I will confess, I do call in professionals for $100m+ decisions. I've tried organising hostile takeovers purely using advice from Reddit and have had problems in the past. :-(
If you are talking ordinary shares on public market e.g ASX then you can't simply transfer ownership. Way forward is for you to sell back to market and your wife to purchase in her own name.
Not sure if I'm reading your description right but if you are looking to do funny business with the price that would be nigh impossible as you can't make sure your wife gets to purchase ahead of any other person who's on the market. You sell cheap then someone else will just get a bargain.
Stocks of a publicly listed company can be transferred without showing up on an order book. It can be done privately with a few signatures or OTC.
https://www.finder.com.au/how-to-buy-shares-as-a-gift#transf…
Learned something new.
So this doesn't count as a sale with capital gains implications?
It does count as a sale for CGT, just not an on market transaction.
But in the example from OP there is no CGT to pay.
The share price is the same price today
I don't understand what's your concern based on that.
You want to avoid declaring a CG of $0 on your tax return?
Or are if you asking if you should wait until share price matches your buy price?
If half of comments say you should declare, half say no, what you gonna do?
You know you can claim cost of tax accountant on next year tax return right?
How are you going to have a CGT liability if there's no CG?
Agreed.
I'm not sure why people are suggesting this is tricky or uncertain above. It is very black and white, no need for accountants, no CGT liability.
Why make things harder than they need to be?
Maybe OP is confused declaring the whole $10k as income, but he is using the term CG?
Or by transferring the shares to his wife, and his wife is not paying him $10k, that's consider gifting and the wife will pay CGT on the whole value of shares?
And now everyone commenting here is confused?
If not, and he is literally just want to transfer shares to his wife, then this ATO forum link may help him
Why not just sell on market and get her to buy, avoiding the off market transfer paperwork. Brokerage is so cheap you would have to value your time very poorly to make it worthwhile otherwise.
A $10m sell on the order book for a turd stock would raise an alarm. The is also a high possibility of slippage.
Pretty sure the $10m is an example, otherwise let me assure you OP could call their broker's direct line that they would answer on the first ring for any questions about transferring shares.
OP's first call was to OZB. I'm pretty sure OP is as green behind the ears as a leprechaun.
Don't do it! She'll be gone in 60 seconds!
Sorry all!! It’s 10k not 10m!
Lol, if it was 10m… no transfer:)
https://www.ato.gov.au/Individuals/Investing/In-detail/Inves…
However I remember the cost to transfer shares are not cheap ie higher than the brokerage fee if she is to purchase on the market
Ask your accountant.
Yes, go seek your accountant’s advice.
Also CGT has a 50% discount on the capital gains ( I think if ownership > 1yr ), again as per above.