Private ruling: CGT - disposal of property
Date of advice: 8 April 2025
Published: 16 June 2025
Ruling period: Year ending DDD MM 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Can you disregard any capital gain or loss from the disposal of your ownership interest in the property? | A1: Yes . CGT event A1 happens if you dispose of a CGT asset you have an ownership interest in. However, a capital gain or loss is disregarded if you acquired the asset before 20 September 1985. A 50% ownership interest in the property was transferred to your parent to be held on trust for you by court order before 1985. You were the beneficial owner from before 1985 (and the legal and beneficial owner from 20XX) and the interest is a pre-CGT asset, therefore the capital gain on disposal is disregarded.

Relevant facts and circumstances: Your parents owned their matrimonial home at XX XXX XX as joint tenants. On DD MM 19YY, under an order by the XX XXX XX your one of your parents transferred their 50% interest in the property to your other parent, to be held on trust for you until you attained majority. On DD MM 19YY a caveat was lodged with the XX XXX XX to protect the interest under the trust deed. Your other parent re-married and remained living at the property. From MM 19YY to mid-19YY you and your family also lived at the property. On DD MM 20YY, the 50% ownership interest in the property held on trust for you by your parent was transferred to you as a joint tenant. In MM 20YY the title of the property was updated to show the property was held as tenants in common. On DD MM 20YY your parent passed away. In MM 20YY your stepparent advised they wished to sell the property. The property sold on DD MM 20YY with settlement occurring on DD MM 20YY.

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