Private ruling: CGT - sale of property
Date of advice: 16 December 2020
Published: March 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the sale of the property result in a capital gains tax (CGT) event for you? | A1: No. CGT event A1 happens when you dispose of a CGT asset. The beneficial owner of the CGT asset will be liable to determine the capital gain or loss from the event. We accept the beneficial owners are different to the legal owner. The beneficial owner since the property was acquired is X. When the property is disposed of CGT event A1 will occur for the beneficial owner and any capital gain or capital loss made upon this sale will be disregarded under the main residence exemption. Further information on a beneficial owner can be found in Taxation Determination TD 2017/11 Income tax: who should be assessed to interest on bank accounts?

Relevant facts and circumstances: You are the enduring power of attorney and guardianship for a relative, relating to all their matters financially and medically. Due to their health issues, changes have been made to the distribution of their assets. Property was purchased by your relative and this has been their main residence since acquisition. In 20XX you were included as a sole proprietor on the legal title for the remainder of their life and upon their death. You did not transfer or pay any money for being included on the legal title for this property. Any costs attributed to the change on the title was paid for by your relative. In 20XX, your relative decided to sell the dwelling. Any proceeds from this disposal were to accommodate them in a retirement village. You were a co-signature on the sale documents as a formality to benefit their wishes. Upon disposal you did not receive any distribution or benefit from this sale financially. This was never your main residence. The property sold and settlement occurred 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10