Private ruling: Capital gains tax
Date of advice: 26 June 2019
Published: August 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the sale of the property result in a capital gains event for you? | A1: No Having considered your circumstances and the relevant factors relating to your situation the Commissioner accepts that although you were the legal owner of the property, you held no beneficial interest in the property and your relative was absolutely entitled to the property. Therefore, sale of the property will not result in a CGT event for you in relation to the disposal of the property.

Relevant facts and circumstances: Some years ago, you took out a loan in your name to purchase a block of land and built a house on it to assist your relative who was unable to secure a loan in their own name due to their limited income. You have never considered the property as belonging to you and have not contributed financially to it. Your relative paid the deposits for the land and the house and all the expenses including the loan repayments during the entire ownership period. Your relative and their family lived in the property as their main residence since it was built until it was sold. You will receive no funds from the sale of the property or any financial benefit in relation to the property.

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 106-50 | Income Tax Assessment Act 1997 Section 108-5