My partner and I have a rental property that is costing us a fortune in ACT Government Land Tax.
Our tenant is my partners son and we are looking at getting him to purchase a third of the property so it will no longer be a rental property.
There is still a mortgage on the property of around $310,000 and the property estimated value would be around $580,000.
What is the best way to go about this and is there any way of preventing (or minimising) Capital Gains Tax?
Graham Doessel - CEO - MyCRA (Specialist Credit Repair) Lawyers (LPH)
Current Rating: 4.65 / 5
Capital Gains Tax (CGT) is only an issue if you've made a capital gain.
That is (in simple terms) the difference between what you paid for it and what you sell it for.
There may be several other possibilities at your disposal other than the one you have mentioned here.
Have you sought legal or financial advice yet? Probably a good idea... I have some good contacts with both of those.
Also, the way you structure the sale is VERY important both in terms of how it'll affect you, and how it'll affect your partner's son.
If you want to chat further, look up my profile and give me a call. Happy to point you in the right direction - no obligation at all.
Hope some of that helps...