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I'm seeking advise around transferring shares from my individual commsec account to a joint commsec account with my wife.
I want to know what the tax implications would be to myself and to my wife. From the reading I have done online it would be a CGT event for both of us but i'm not really a tax and numbers guy so I need a 'dumbed' down response.
When you dispose of them to your wife you are actually 'selling' them and you will either lose money or gain money.
If you gain money you will then pay tax on the difference between (what you purchased them for + buying costs + selling costs) and the value of the shares when you disposed of them. If you have held them for more than 12 months then you can apply a 50% discount on the profit so you will pay less tax.
Thanks for the replies all.
Just to clarify, IF I transfer them to the joint account with my wife I will also be the other account holder so it's going from 100% owned by myself to 50/50 with my wife and I.
To confirm the advice you've provided, if I transfer (sell) them to the joint account I (as the current owner) will make a loss/profit (depending on the prices) and the joint account will NOT have a CGT event until they sell some shares? right?
Example, I have 100 shares for $1 and they currently priced at 0.90cm, if I transfer (sell) them to our joint account I will make a 10c (10%) loss CGT event. If the joint account then sells them at $1.50 that would be a 60c profit against the 0.90c 'purchase price'.
Have I summed that up correctly?