OK, thanks for your help so far by the way Terry.

So each of us is charged CGT at the difference between the sale price and the purchase price. That is fine.

Will the ATO pick up the uneven deductions for renovations and try to tax accordingly? So will I end up with a tax bill at the end of it do you think?

OK, so if for instance I purchased his half, and changed the title to reflect only my ownership, what will happen?

If the unit is valued at 300,000, I need to give him 150,000. But the numbers are distorted because he only wants back what I owe him, not what the unit has appreciated.

What is his CGT? Difference between 86,000 (half the purchase…[Read more]