Draft Taxation Determination
Income tax: capital gains: if marriage breakdown roll-over applies to a transfer of a CGT asset between spouses, what expenses of the transferor become the first element of the transferee's cost base of the asset under paragraph 126-5(5)(a) of the Income Tax Assessment Act 1997?
Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 1999/57.
FOI status:Not previously released in draft form
|Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office.|
1. Expenditure incurred by a transferor arising from a marriage breakdown property settlement can be included in the first element of the transferee's cost base to the extent of the costs of transfer (conveyancing fees, stamp duty, etc).
3. The transferor's costs of transfer that satisfy the cost base rules in Division 110 of the ITAA 1997 must be apportioned on a reasonable basis over all CGT assets involved in the property settlement, namely, all CGT assets transferred and all CGT assets retained by the transferor.
4. Under subsection 126-5(5) of the ITAA 1997, if a CGT asset is transferred between spouses because of a court order under the Family Law Act 1975, the first element of the asset's cost base in the hands of the transferee is the asset's cost base in the hands of the transferor at the time the transferee acquired it. The first element of the asset's reduced cost base (if applicable) is calculated similarly.
5. We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.
|Comments by Date:||15 September 1999|
|Contact officer details have been removed following publication of the final ruling.|
Commissioner of Taxation
18 August 1999
BO CGT marriage breakdown summit 1999
reduced cost base