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Edited version of private advice
Authorisation Number: 1052296074512
Date of advice: 23 August 2024
Ruling
Subject: Capital gains tax
Question 1
Is relevant date the acquisition date of the property?
Answer 1
Yes. Based on the information provided to the Commissioner the acquisition date of the property is the relevant date.
Question 2
Is the first element of the cost base for the property the market value on the relevant date?
Answer 2
Yes. Based on the information provided to the Commissioner the first element of the cost base when calculating any capital gain or loss is the market value on the relevant date.
Question 3
Will the 50% discount apply to the sale of the property?
Answer 3
Yes. Based on the information provided to the Commissioner the 50% discount will apply when calculating any capital gain on the property.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away several years ago.
Probate was granted appointing Individual Z (The Executor) of the estate of the deceased.
Individual Y died a number of decades ago.
At the time of Individual Y's death, he owned the property.
Following proceedings in the Supreme Court, it was determined that the deceased had become the owner of the property, by adverse possession.
The Supreme Court made orders that the Executor of the Estate of the deceased become the registered proprietor of the property.
The property situated was sold by the Executor by auction.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 110-25
Income Tax Assessment Act 1997 section 115-25
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