Income tax: capital gains: if a post-CGT asset bequeathed to a legal personal representative/beneficiary (LPR/B) is disposed of within 12 months of the LPR/B's acquisition, in which circumstances is indexation available?
Please note that the PDF version is the authorised version of this ruling.TD 94/79 has been withdrawn as part of a project to review public rulings.This document has changed over time. View its history.
Notice of Withdrawal
1. TD 94/79 explains that if the LPR/B disposes of an asset within 12 months of the LPR/B's acquisition but after more than 12 months from when the deceased acquired the asset, the benefits of indexation are available. However, if the LPR/B disposes of the asset within 12 months of the LPR/B's acquisition and within 12 months of the deceased's acquisition, the LPR/B is denied any benefits of indexation.
2. Indexation applies only in respect of expenditure incurred at or before 11:45am on 21 September 1999. For expenditure incurred after that time, a taxpayer may be eligible to discount their capital gain under Division 115 of the Income Tax Assessment Act 1997.
Commissioner of Taxation
27 June 2018
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indexed cost base