Private ruling: Capital gains tax
Published: November 2013
Ruling period: Year ending 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Question and answer | Can any capital gain or loss made on transfer of a property, purchased prior to 20 September 1985, to your family trust be disregarded? | Yes.

Relevant facts and circumstances: You and your spouse purchased a property prior to 20 September 1985. You will transfer the property's ownership to a family trust.

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 108-5

Reasons for decision: Summary: A capital gain or capital loss may arise if a capital gains tax (CGT) event happens to a CGT asset. Any assets purchased prior to 20 September 1985 are not CGT assets. Accordingly, any capital gain or loss you make on the disposal of an asset is disregarded if you acquired the asset before 20 September 1985. In your case, you acquired the property prior to 20 September 1985. Therefore, any capital gain or loss made upon the transfer of the property's ownership to the family trust will be disregarded .