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Edited version of private advice
Authorisation Number: 1051563291804
Date of advice: 15 August 2019
Ruling
Subject: Marriage breakdown - property beneficial ownership
Question
Are you required to declare any capital gain or loss made on the sale of the property where you have no beneficial ownership?
Answer
No
In this case, there is sufficient evidence to establish that the equitable interest is different from the legal title. It is accepted that as a result of the court order, your equitable interest is different from your legal interest in the property. Any gain or loss in relation to the sale of the property in 20XX should not be declared by you as you do not hold an equitable interest in the property.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
After 20 September 1985, you bought a property in Australia (the property) with your spouse as joint tenants.
You are both resident of Australia.
You separated from your spouse and on a specific date and under a court order, ownership of the property was given to your ex-spouse.
Legal ownership of the property was never transferred to your ex-spouse's name, however the orders also detail that your ex-spouse is responsible for the outgoing in relation to the property.
Your ex-spouse paid all the expenses related to the ownership of the property. You did not receive any benefit from the property.
The property was subsequently sold. All proceeds went to your ex-spouse. The property was sold at a loss.
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