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ATO Interpretative Decision

ATO ID 2001/731 (Withdrawn)

Income Tax

CGT-Deceased Estate - Cost base of CGT asset - legal costs to representing a family member who had been assaulted.
FOI status: may be released
  • This ATO ID is withdrawn as it is a simple statement of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Do legal costs incurred by the executor of a deceased estate in representing a family member who was assaulted form part of the cost base of the estate's assets pursuant to subsection 110-25(6) of the Income Tax Assessment Act 1997 (ITAA 1997)?

Decision

No, legal costs incurred in representing the family member do not form part of the cost base of the estate's assets under subsection 110-25(6) of the ITAA 1997.

Facts

The executor, in their capacity as solicitor for the late taxpayer's family, represented a relative of the deceased who was assaulted by another family member.

Reasons for Decision

The legal costs incurred in representing someone in relation to an alleged assault are not directly related to the assets of the deceased estate. Therefore they do not form part of the cost base of the assets of the estate as they are outside the operation of section 110-25 of the ITAA 1997.

Date of decision:  27 September 2001

Legislative References:
Income Tax Assessment Act 1997
   Section 110-25
   Subsection 110-25(6)

Related ATO Interpretative Decisions
ATO ID 2001/729
ATO ID 2001/730
ATO ID 2001/732
ATO ID 2001/733
ATO ID 2001/734
ATO ID 2003/1048

Keywords
Capital gains tax
Capital gains
CGT asset issues
CGT cost base
CGT deceased estates
Capital Gains Tax CoE

Business Line:  CoE(CGT)

Date of publication:  30 November 2001

ISSN: 1445-2782

history
  Date: Version:
  27 September 2001 Original statement
You are here 20 July 2007 Archived

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