Question
In the 2014/15 tax year, I sold an investment property (bought, held in my name only)
and proceeds were deposited into a joint account to be used for expenses while grey nomading .
My now ex husband took the opportunity (while I was in hospital) to transfer 2 amounts of $10000 each to his own personal account. He then transferred a final $140000 before leaving and returning to
I am currently working on the whole mess and read that Australian banks need to advise the ATO of deposits into accounts over $10000?
I have legal representation but interested in whether this would be seen by ATO as a CGT event? And would these amounts attract capital gains tax?
Answer
CGT does not apply to transactions that only involve money, there needs to be an asset.
The capital gain on the investment property would be taxable in your name only because the property was in your name only, regardless of where the sale proceeds went.
At best the ATO may see the amounts go into his account and ask where he got the money from but as he will be able to show he got it from your joint bank account ie it is not taxable income, they will accept that and leave him alone.