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Edited version of your written advice
Authorisation Number: 1051487196273
Date of advice: 26 February 2019
Ruling
Subject: Capital gains tax
Question
Did the sale of the property B result in a capital gains tax (CGT) event for you?
Answer
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
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts
Several years ago, your parent used their home (property A) as security for your business loan.
Property A was sold.
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.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 106-50