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Edited version of your written advice
Authorisation Number: 1051254769068
Date of advice: 20 July 2017
Ruling
Subject: Capital gains tax
Question
Will any capital gains or losses on the sale of your interest in the property located in Country X be disregarded?
Answer
Yes.
This ruling applies for the following period
30 June 2018
The scheme commences on
1 July 2017
Relevant facts and circumstances
You inherited a 50% property interest in a property located in Country X from your parent on the date of their death in 20XX.
The deceased obtained their interest in the property prior to 19XY.
The spouse of the deceased has lived at this address since the date of death and continues living at the address currently.
The property has never been used for income-producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195(1)
Income Tax Assessment Act 1997 Section 102-20
Income Tax Assessment Act 1997 Section 104-10
Reasons for decision
Question
A capital gain or capital loss is made when a capital gains tax (CGT) event happens to a CGT asset you own.
The most common event is CGT event A1 which happens when a person disposes of a CGT asset to someone else. This includes when a person sells a property.
If you own a dwelling in your capacity as trustee of a deceased estate (or it passed to you as a beneficiary of an estate), then any capital gain or loss on the disposal of the property is disregarded if:
● the property was acquired by the deceased before 20 September 1985, and
● from the date of the deceased’s death, the property was the main residence of the spouse of the deceased’s until the property is sold
In your case the deceased died in 20XX and the spouse of the deceased has continued living in the property as their main residence from the date of their death. This property was acquired by the deceased before 19XY.
Therefore any capital gains or losses on the sale of your property are disregarded.
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