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Edited version of private advice
Authorisation Number: 1051541376180
Date of advice: 11 July 2019
Ruling
Subject: Capital gains tax
Question
Will a capital gains tax event occur for you when the property is sold?
Answer
No
It is considered that while you are the legal owner of the property (your name is on the title deed), however you are not the beneficial owner (further information on the definition of a beneficial owner can be found in Taxation Ruling IT 2486 and Taxation Determination TD 92/106).
The beneficial owner is Individual A. The sale of the property will not result in a capital gains tax event for yourself as you are not the beneficial owner of the property.
This ruling applies for the following period:
Year ending 30 June 2020
Year ending 30 June 2021
The scheme commences on:
1 July 2019
Relevant facts and circumstances
Your name was transferred to the title deed of the property owned by Individual A, for security purposes following a relationship breakdown.
No money was transferred from you to Individual A; you had no financial interest in the property.
You have not paid for the mortgage or invested in the property.
You will dispose of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 104-10(2)
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