Cgt

HI, hoping someone can answer this question. IS CGT payable when transferring jointly owned investment properties to one partner in the case of a domestic relationship breakdown? Both were owned jointly and will transfer to one partner, one property has made very little capital gain, the other plenty..
thanks in anticipation
 
See Section 126 Income Tax assessment Act 1997


Example given in the Act:

Your spouse transfers land to you because of a court order under the Family Law Act 1975 . Any capital gain or loss your spouse makes is disregarded.

If the land's cost base at the time you acquired it is $10,000, the first element of the land's cost base in your hands becomes $10,000.

ie provided the transfer is done pursuant to the right kind of court order or agreement then no CGT is payable by the transferor and the transferee's cost base starts with the original cost of the property not its value at the time of transfer
 
Is this subject to a court order ?

If so, rollover relief can be a problem since the liability is transferred via the cost base.

Cheers,

Rob
 
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