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ATO Interpretative Decision

ATO ID 2001/709 (Withdrawn)

Income Tax

CGT- Deceased estate Cost base of CGT asset - normal administration costs
FOI status: may be released
  • This ATO ID is withdrawn as it does not clearly explain the ATO view. Please refer to the Guide to capital gains tax for assistance with the issues dealt with in this ATO ID.
    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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 normal administration costs incurred by the executor of a deceased estate 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, as this expenditure is not related to or associated with the cost base of assets devolved to the estate it cannot form part of the cost base of the estate's assets under subsection 110-25(6) of the ITAA 1997.

Facts

The taxpayer is the executor of a deceased estate. In this capacity they incurred normal administration expenses in carrying out duties such as lodging tax returns, financial statements, paying land taxes, rates etc.

Reasons for Decision

As these administrative duties the executor of the deceased estate were not related to the assets devolved to the estate, the expenditure incurred does not fall for consideration under subsection 110-25(6) of the ITAA 1997.

Date of decision:  27 September 2001

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

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

Business Line:  Centres of Expertise Capital Gains Tax

Date of publication:  30 November 2001

ISSN: 1445-2782

history
  Date: Version:
  27 September 2001 Original statement
You are here 19 January 2004 Archived

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