Be Careful About Property Arrangements With Family
Written on the 11 November 2013
The Administrative Appeals Tribunal (AAT) has held that a taxpayer who jointly owned a townhouse with his son (who lived there) was liable for CGT on his share of the property when it was sold.
In April 2002, the taxpayer purchased a townhouse for his adult son to reside in, but he had both of them registered on the title of the property, to "guard against his son acting unwisely".
Reasons for Decision
The taxpayer claimed that:
However, the AAT stated that these matters did not alter his liability, as: