Hey all,
Question. If my parents own the family home (since 86) and inherited another house and want to move to the new place and gift/sell the original family home to the kids would capital gains tax apply?
Cheers
Capital Gains Tax - Any Accountants Here?
Shane034 on 10/11/2022 - 21:09
Comments
They would still need to pay stamp duty I believe. Even if gifting
Both previous answers are correct.
Yes and No
Thanks guys.
Could just adding the kids to the deeds rather than a full sale avoid some or all the tax? A quick calculation tells me transfer duty on a 1.5 mil sale is 67k. Not cheap.Although with the kids first home buyers, and mum with a small business I'm guessing we should get legal advice re: deductions/exemptions.
I am pretty sure adding other people on the deed is considered the same as transferring the property (both for stamp duty and CGT). Yes you should get proper advise.
Thats the definition of optimistic! If it were as simple as adding anyone to a title deed to avoid stamp duty - then EVERYONE would do this.
Just like with ownership of shares etc - if you want to transfer or add others to the 'ownership' of them, it's viewed as a sale. $67,000 is a pretty amazing price to pay for getting gifted a $1.5m house - so look at it that way and it's really not so bad.
If paying the $67,000 is such an obstacle - perhaps there's a 'tricky' work around but you'd likely be best of going to see an accountant to find these.
With all due respect if your family is lucky enough that they're in a position to gift a $1.5m house - AFTER inheriting what presumably is a superior value house, then these are pretty small obstacles - so am sure in a few years it'll be looked back on as peanuts vs the market values of the properties.
This is a nice problem to have. :-)
Very true. Despite the extra headaches its a good problem for the family to have. Thanks all for the advice. Off to search for accountant recommendations.
Pretty sure you/they’re still coming out ahead at 67k on 1.5 milli.
Dur to legal requirements in giving financial advice please see a real accountant.
Man, the only thing I inherited from my Dad was an electricity bill.
Still better than me - all I got is a prediposition to heart disease and the potential to have Motor Neurone Disease - wanna swap?
No tax as it would fall under the main residence exemption
https://www.ato.gov.au/individuals/Capital-gains-tax/Property-and-capital-gains-tax/Your-main-residence-(home)/Eligibility-for-main-residence-exemption/