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plim83(Initiate)Initiate
8 June 2024

Can I transfer half of my currently ppor property to my spouse before turning it into investment property in order to reduce rental income tax and cgt (if sold later)?


In detail, my plan is to:

  1. Transfer my half share of the currently ppor property, and pay half of the stamp duty. The cgt is exempt since it is ppor. My spouse then has full share.
  2. My spouse's main income is smaller than me so therefore her rental income tax is smaller than mine.
  3. Later on if she decides to sell, she pays cgt that is smaller as well than what I would have to pay.
  4. Is this allowed?


Thank you in advance.

1,758 views
5 replies
1,758 views
5 replies

Most helpful response

Most helpful reply

frankg(Champion)Registered Tax Professional
9 June 2024

Yes you can with provisos -

  1. It has to be at market value
  2. You pay stamp duty on the transfer now
  3. She will pay CGT on some or all of the gain when she sells ( depending on whether she uses the 6 year rule).
  4. You need to weigh up these costs against the tax saving


All replies

Most helpful reply

frankg(Champion)Registered Tax Professional
9 June 2024

Yes you can with provisos -

  1. It has to be at market value
  2. You pay stamp duty on the transfer now
  3. She will pay CGT on some or all of the gain when she sells ( depending on whether she uses the 6 year rule).
  4. You need to weigh up these costs against the tax saving


plim83(Initiate)Initiate
9 June 2024

Thank you for the answer.


Can I also confirm that there is no stamp duty for married couple:

https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/family-transfers#:~:text=No%20transfer%20duty%20is%20payable,site%20of%20the%20family%20home.

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Can I transfer half of my ppor property to my spouse to reduce tax when putting it for rental? | ATO Community