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Edited version of private advice
Authorisation Number: 1051619355662
Date of advice: 10 December 2019
Ruling
Subject: Capital gains tax - Absolute Entitlement
Question
Do you have a capital gains tax event upon the sale of the Property?
Answer
No. Your relative is absolutely entitled to the Property as against you as trustee. Your relative is treated as the relevant taxpayer in respect of the asset for the purposes of the capital gains tax provisions.
This ruling applies for the following period:
Financial year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Property was purchased in your name with funds belonging to your relative.
You hold the Property on trust for your relative. Your relative is absolutely entitled to the Property.
Your relative has resided in the Property as their main residence. Your relative has personally paid all outgoings relating to the Property.
The Property will be placed on the market and sold as your relative can no longer live on their own.
The capital proceeds from the sale of the Property will belong to your relative.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 106-50
Income Tax Assessment Act 1997 Part 3-1
Income Tax Assessment Act 1997 Part 3-3