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Edited version of private advice
Authorisation Number: 1051523441746
Date of advice: 10 June 2019
Ruling
Subject: Capital gains tax
Question
Did the sale of the property 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 relation and that he was absolutely entitled to the property. Consequently the entire property is treated as having been your relation's asset for CGT purposes. Therefore, there is no CGT event for you in relation to the disposal of the property. Further information can be found by searching TR 2004/D25 on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased a property in your name a few years ago for your relation when your relation was unable to obtain finance.
The property was sold recently.
Your relation paid all expenses for the property from the time of purchase, including the mortgage, rates, utilities, all repairs and maintenance as well as the cost of renovations.
You did not pay for any expenses or mortgage repayments in relation to the property.
The property was your relation's main residence. You did not live in the property at all. The property was always regarded as your relation's property.
The funds from the sale of the property were used to pay off the loan and the balance went to your relation.
You received no funds from the sale of the property or any financial benefit in relation to the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 102-20
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 106-50
Income Tax Assessment Act 1997 Section 108-5