18 Sep 13 Joint tenant liable to tax on capital gain - Gerbic
The AAT has held that the taxpayer, who owned a property as joint tenant with his son, was liable to tax on half the capital gain that he made on the disposal of the property. The AAT rejected the taxpayer's arguments that he held his interest as trustee for his son, as there was no evidence of a trust and his son contributed nothing to the purchase price of the property.
The AAT held further that the fact that the son was able to claim an exemption from tax for his share of the gain on the basis that the property was his principal place of residence did not entitle the taxpayer to an exemption.
Gerbic and FCT  AATA 664 (AAT, Molloy DP, 17 September 2013).