We helped our daughter buy a house. Will we have to pay CGT? |
We helped our daughter buy a house. Will we have to pay CGT?
May 10, 2026 — 3:01am
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In 2014, our daughter bought a property for $750,000. We financed $350,000 and were added to the title as security. The property is now worth $2 million.
We want to remove our names from the title, with our daughter assuming the full debt. As this is being treated as a change of ownership, capital gains tax and stamp duty will apply. Is there any way to gift our share and avoid these consequences?
Thanks for your question. Parents helping children into the property market is common today, and a structure similar to what you and your daughter undertook is contemplated by many, so it’s great to have an illustration of how that plays out long term.
I am unaware of any way that you can get around the capital gains tax liability here. As you identified, even if it’s a gift, it’s still classed as a disposal at market value. While your daughter’s share is capital gains tax-exempt as her........