Private ruling: Capital gains tax - Gifted property
Published: September 2011
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Did you make a capital gain when you reacquired the property? | A1: No.

Relevant facts and circumstances: You gifted the property to your sibling some time after XX September 19XX. The property has since been gifted back to you. The property has never been leased or used as an investment property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 112-20

Reasons for decision: Summary: You make a capital gain if a CGT event happens to an asset you own. The act of acquiring the property is not a CGT event that will subject you to capital gains tax. Therefore, you do not have to pay capital gains tax until a CGT event happens to the property. For your reference the cost base of the property will be its market value on the day it was gifted back to you.

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