Edited version of private advice

Authorisation Number: 1052108649472

Date of advice: 1 May 2023

Ruling

Subject: CGT - beneficial ownership

Question

Were you the owner of the unit for CGT purposes from XX Month 20YY?

Answer

Yes.

Your ownership in the unit prior to XX Month 20YY was a legal ownership only. Based on the facts, the Commissioner accepts that in your circumstances, although the title of the property was partly in your name prior to XX Month 20YY, it was never intended for you to have, and you never had, any beneficial ownership of the property until an interest in it was gifted to you. Therefore, you acquired your interest in the unit on XX Month 20YY for CGT purposes.

Note: The transfer of your parent's interests in the unit to you and your siblings is not an arm's length transaction. You must use the market value of your X% interest at that time to calculate your cost base.

This ruling applies for the following period:

Financial year ending 30 June 20YY

The scheme commenced on:

XX MM 20YY

Relevant facts and circumstances

You agreed to joint ownership of the unit to help your parent secure a bank loan for the unit.

Your parent used the unit as the main residence from the time of purchase until XX Month 20YY when they moved into a nursing home. Your parent paid all mortgage payments, expenses and upkeep of the unit.

Prior to your parent moving to a nursing home, they transferred the unit ownership to their children in equal shares.

You were given X% ownership of the unit on XX Month 20YY and the unit was valued at $XX0,000.

The unit was sold on XX Month 20YY via auction.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section 108-5

Income Tax Assessment Act 1997 section 109-5