Professional valuation
Even when selling or gifting a property to a family member you need to determine the property's market value. The government uses this "true" valuation to determine the stamp duty and CGT costs regardless of the discounted selling price.
The Australian Tax Office says, "You should obtain a valuation from a professional valuer, or work out the market value yourself using reasonably objective and supportable data. This can include the price paid for very similar property that was sold at the same time in the same location."
I own a property with my brother (50%/50%). We have owned it for almost 20 years, and I will soon be moving offshore for work. My brother has lived in the property for most of this time, and I have lived there intermittently. If I was to sell the property to him, I assume he would have to pay stamp duty? Also, would we have to get a valuation re price, or are we ok to sell at a mutually agreed price?
Hi PC,
If your brother buys your half of the property he will have to pay stamp duty on the market value of the property (50% of it, if buying your half). This is true even if you agree to sell to him at a lower price (which you are allowed to do).
It would be advisable to speak with a conveyancer. They will be able to give you the most accurate assessment of all the costs involved and identify any discounts or exemptions.
I hope this helps.
Regards,
Richard
What happens if the parent gifts the property to two of their children and then those children sell the property. Does that mean the children will have to pay capital gains tax?
Hi Ian,
To avoid capital gains tax on a property you need to live in it as your principal place of residence (your home) for 12 months.
If the children haven’t owned the property for at least 12 months and aren’t living in it, then CGT may apply. You can read our guide on capital gains tax on property for more information about this.
I hope this helps!
Regards,
Richard
My mother purchased a property in Qld for me to live in, and I reside in it.
She wishes to ADD my name to her property title for it.
Do we get a Qld conveyancer to do this with the Titles QLD office?
I have never owned a property before, so am I exempt from stamp duty on my share?
Also, since it’s a private home, not an investment property, are we exempt from CGT?
Thanks.
My mother wants to add my name to hers on the title of a house she bought for me to live in here in Queensland.
What are the steps to do this?
Do we get a Queensland conveyancer to do this with the Titles Office ?
Thanks.
Hi Mark,
You do have to pay a bit of money to use a conveyancer but they can definitely help you navigate this. You may be able to get an exemption on stamp duty and avoid any CGT if your mother has owned the property for more than 12 months and lives in it. But it can be complicated, so it’s worth getting professional help.
Kind regards,
Richard
My husband’s share on our house which is 50% is going to be gifted to our only son. Therefore the ownership will be between me and my son. My son is 37 years old and live with us in the house since birth. This will be his first ownership of a home. The estimate value of 50% is 600,000. Will he be exempted from paying stamp duty? We plan to have it done by a conveyancing lawyer. We know we will have to pay other expenses but only small amount.
Hi Tess,
Transferring the property title to your son may incur stamp duty based on an estimate of how much the property would sell on the market. So 50% of $600,000 would equal stamp duty charged on $300,000.
As a new homeowner, he might qualify for a stamp duty exemption or discount depending on the value of the house and the rules in your state or territory.
It’s good that you have a conveyancer to handle this. They will be able to give you the most accurate assessment of all the costs involved and identify any discounts or exemptions.
I hope this helps.
Kind regards,
Richard
hi, my mother-in-law moved into our home 3 years ago after her husband passed. We’re exploring wether she can buy part or percentage of our house (ie 10% val = $250k). she is 86 and on a pension, but has some good savings from the sale of her last house. what can she do to pay and become part of our property ownership?
Hello Rob,
You would need to add your mother-in-law to the property title. This involves completing a form usually available through your state government’s revenue office website. It might be a good idea to talk to a conveyancer as they can help you understand the full legal details.
Your mother-in-law might also need to pay stamp duty on the portion of the property she will purchase. This is an important cost to consider.
Kind regards,
Richard