Private ruling: Capital gains tax
Published: August 2012
Ruling period: Year ended 30 June 2013.
Date scheme commenced: 1 July 2012.

Ruling: Q1: Will you make a capital gain or capital loss when you transfer the property to a relative? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 - Section 102-20 | Income Tax Assessment Act 1997 - Section 104-10 | Income Tax Assessment Act 1997 - Section 110-25 | Income Tax Assessment Act 1997 - Section 116-20

Reasons for decision: Summary: In this case, capital gains tax (CGT) event A1 occurred upon entering into a contract of sale with your relative. Any capital gain or loss made on the property would have been made by you on this date. A CGT event will not occur upon transferring the property to your relative. Therefore no capital gain or loss will be made on the transfer of the property to your relative.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You obtained a home loan from a bank to fund the purchase of a house in your name for your relative and their family. | You entered into a rent to own agreement on the property with your relative. | A contract of sale between you and your relative on the property was signed. | Due to the global financial crisis, you paid out the home loan. | Your relative has now requested to pay out the remaining loan with you and to take ownership of the property.