Will CGT event A1, or another CGT event, happen to you when the legal title to the property is transferred?
No. Having considered your circumstances and the relevant factors relating to your situation, the Commissioner accepts that although you are a legal owner of the property, it was never intended for you to have any beneficial ownership of the property. Therefore, CGT event A1 or any other CGT event will not happen to you when the legal title to the property is transferred. This ruling applies for the following periods : Year ended 30 June 20XX Year ended 30 June 20XX The scheme commenced on: 1 July 20XX
The property was purchased in 20XX. Your parents did not meet the lending criteria to service the loan, so you were added to the loan and title in name only. You lived in the property briefly following its purchase and moved to private rentals until you purchased your own property. Your parents separated but the title and loan still remain in all three names and no division of property occurred during the divorce. One of your parents has serviced the loan solely since the divorce and you have not contributed towards the loan or deposit at any time. You have not contributed to any of the expenses related to the property. All utilities associated with the property have been in your parent's name. You have not claimed any deductions of depreciated assets at any time for the property nor have you gained any income from the property. Your parent now has the loan reduced to an amount they can service alone and wishes to remove you from the loan and title. You will not receive any compensation when your name is removed from the title.
Income Tax Assessment Act 1997 section 102-20 Income Tax Assessment Act 1997 section 104-10