Will CGT event A1, or another CGT event, happen when you remove your names from the title of the property?
No. CGT event A1 occurs when there is an ownership of a CGT asset. However, CGT event A1 does not occur if there is only a change of legal ownership and not a change of beneficial ownership. Based on the facts, the Commissioner accepts that in your circumstances, although you were a legal owner of the property, it was never intended for you to have any beneficial ownership of the property and it can be reasonably concluded that at time of change of legal ownership of the property, when your name was removed from title, that no change of beneficial ownership occurred. You did not have a CGT event A1 or any other CGT event occurring when you removed your name from the title of the property. This ruling applies for the following period : Year ended 30 June 20XX The scheme commences on: 1 July 20XX
You purchased a property with your parents. Your parents were not able to secure finance to purchase the property on their own so you assisted them by lending your name on the loan document. It was a requirement of the bank that the title deed for the property was put into joint names in equal shares. The property was the main residence of your parents since the date of acquisition and was not used to produce assessable income. You did not reside at the Property. You did not contribute any portion of the purchase price or mortgage payments of the property and all outgoings and maintenance costs related to the property, for example council rates and water, were paid by your parents. You have transferred your interest in the property to your parents.
Income Tax Assessment Act 1997 section 102-20. Income Tax Assessment Act 1997 section 104-10.