AFR Smart Investor --- Page: 86-87 : December 2006 Original article by Peter Cerexhe
ABIX Summary
Giving a family member or friend a gift of real estate may not earn you the plaudits you may think. Unless the property in question was your main place of residence, or was acquired by you prior to 20 September 1985, the recipient may end up having to pay capital gains tax (CGT) when they dispose of the property. The person giving the gift must record the transaction on the tax return, and may also find themselves attracting a CGT bill. There may also be stamp duty to pay on the transfer of the property, and the giver and recipient will need to agree who is going to pay for the stamp duty.
