...... he should not have to pay CGT on the sale of a townhouse he owned jointly with his son.
He argued, he was only holding his interest in the property to protect his inexperienced son from selling it on a whim. The individual had purchased the property for his adult son to live in and transferred the property to himself and his son as joint tenants. After living in the townhouse for a few years, the son moved out to another property. The townhouse was then sold and all of the funds were used to pay down the mortgage on a new property. The individual argued that he received no proceeds from the sale and that he held his interest in the property in trust for his son, or alternatively, that an exemption under the CGT law should apply. The AAT did not accept the arguments and held that as a joint tenant, the individual was liable to CGT on 50 per cent of the net capital gain on the sale. Had the taxpayer produced some evidence, the outcome may have been different. . . . . . . .
27th-November-2013 | 