EV 1052476599741currentnon-binding advice

CGT - property

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Is the capital gain you made on the sale of the property apportioned according to the terms of the court orders?

2

Yes. The court orders alter your equitable interest in the property. Your capital gain is calculated according to your equitable interest. Therefore, your capital gain is apportioned according to the terms of the court orders. This ruling applies for the following period: Year ended 30 June 20XX The scheme commenced on: 1 July 20XX

3

You and your ex-spouse owned the property as joint tenants. On XX XXX 20XX, the Federal Circuit and Family Court of Australia issued Financial Consent Orders (the court orders) in relation to your divorce. The court orders directed you to sell the property and pay a certain sum out of the proceeds to your ex-spouse. The balance was to be divided equally between you and your ex-spouse. The property was sold on XX XXX 20XX pursuant to the court orders.

4

Income Tax Assessment Act 1997 section 104-10