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  • Tax advantaged entity



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    A tax advantaged entity is:

    • a tax exempt entity - for example, a church or charity or
    • the trustee of:
      • a complying superannuation fund
      • a complying approved deposit fund or
      • a pooled superannuation trust.

    If an asset that forms part of your deceased estate passes to a tax advantaged entity, a CGT event happens in relation to the asset just before you die. A capital gain is made from the CGT event if the market value of the asset on the day you die is more than the cost base of the asset. A capital loss is made from the CGT event if the market value is ess than the asset's reduced cost base. Any capital gain or loss is taken into account in the date of death return (the return from the start of the income year to the day you die). The trustee of your deceased estate, not the tax advantaged beneficiary, pays any tax on any net capital gain.

    Last modified: 18 Sep 2009QC 18323