Private ruling: Capital gains tax
Date of advice: 26 February 2019
Published: May 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Did the sale of the property B result in a capital gains tax (CGT) event for you? | A1: No. Having considered your circumstances and the relevant factors relating to your situation the Commissioner accepts that your interest in the property was held on bare trust for your parent and that they were absolutely entitled to the property. Consequently the entire property is treated as having been your parent’s asset for capital gains tax purposes. Further information can be found by searching TR 2004/D25 on ato.gov.au


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 106-50


Relevant facts: Several years ago, your parent used their home (property A) as security for your business loan. | Your parent used the money from the sale of property A to purchase property B. You did not contribute any money for the purchase of this property. | The bank required your name to be on property B as well as your parent’s due to your business loan. | Property B was your parent’s main residence. | Property B was sold. The funds from the sale of the property B went to your parent. | Property B was always regarded as your parent’s property. | Your business ceased approximately X years ago. | Your parent used the money from the sale of property B to purchase their current main residence, property C.