| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052290768999
Date of advice: 13 August 2024
Ruling
Subject: CGT - discount capital gains
Question 1
Are you entitled to use the CGT discount method when calculating the net capital gain for the $XX worth of shares that the estate sold on XX 20XX under subdivision 115-A of Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. Based on the information provided to the Commissioner you are able to use the discount method when calculating any capital gain on the $XX worth of shares that the estate sold on XX 20XX.
Question 2
Are you entitled to use the CGT discount method when calculating the net capital gain for the $XX worth of XX shares purchased on XX 20XX and sold on XX 20XX under subdivision 115-A of ITAA 1997?
Answer
No. Based on the information provided to the Commissioner you cannot use the discount method when calculating any capital gain on the METCASH shares that were purchased on XX 20XX and sold on XX 20XX for $XX as they were not held for 12 months or more as per the legislation under subdivision 115-A of the ITAA 1997.
This ruling applies for the following periods:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired all the shares after 20 September 1985.
The deceased passed away on XX XXXX.
In the last Will of the deceased, the children of the deceased were appointed as executors and trustees of the trust estate.
On XX XXXX, the executors contacted the share broker to sell $XXXX worth of shares on the same date. It included XX codes of share.
These shares were owned by the deceased for more than 12 months, except for XX units of X share which were purchased by the deceased on XX 20XX and therefore not held for more than 12 months.
The settlement date for all the shares that were sold was on XX 20XX.
Probate was granted on XX 20XX.
The Probate was granted to the executors on XX 20XX following settlement.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115 - A
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
