My two nieces have been staying in my apartment for many years. Now that I'm retired, I'd like to give the apartment to them instead of leaving it to them in my will. The market price for the apartment is around $485k. I have put the question to ChatGPT and it told me the followings:
- Market value (gift value): $485,000
- Original purchase price: $110,000
Location: Victoria
Assumption: It’s not a main residence, so Capital Gains Tax applies
Gift is made for no money, but stamp duty and CGT are based on market value
🔹 1. Receiver’s Cost (Stamp Duty)
Stamp duty on $485,000 in Victoria:
Estimated Stamp Duty = $25,070
(Using general rates from State Revenue Office Victoria)
🔹 2. Giver’s Cost (Capital Gains Tax)
Capital Gain:
$485,000 − $110,000 = $375,000
CGT Discount:
50% discount applies if held for more than 12 months
Taxable gain = $187,500
Tax Payable (by marginal rate):
Marginal Tax Rate CGT Payable (Estimate)
32.5% $60,938
37% $69,375
45% $84,375
Let’s use 37% as a middle scenario:
CGT Payable = $69,375
🔹 3. Total Estimated Cost Summary
Party Cost Type Estimated Amount
Receiver Stamp Duty $25,070
Giver Capital Gains Tax $69,375
Total Combined $94,445
Is the calculated Total combined figure of roughly $100k correct?
Is there any way to keep the Total combined figure down?
That's dodgy in more ways than one.