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Edited version of private advice
Authorisation Number: 1052329138492
Date of advice: 13 November 2024
Ruling
Subject: CGT - deceased estates
Question
Will the capital gain made on the disposal of the property be disregarded?
Answer
Yes.
Under section 128-15 of the Income Tax Assessment Act 1997, you are taken to have acquired the property on the date of the deceased's death.
You owned an interest in the property as the remainder beneficiary in the deceased's will. As the deceased died before 20 September 1985, the property remains a pre - CGT asset and is exempt from capital gains tax.
This ruling applies for the following period:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
Your relative acquired a commercial property prior to 20 September 1985.
Your relative passed away prior to 20 September 1985. Their will provided that the property be held on trust to provide for their spouse during their lifetime, and upon their death, the property would pass to you.
Many years after 20 September 1985, their spouse passed away, and the property passed to you, as per the will.
There have been no major improvements made to the property since it was acquired by your relative.
You will sell the property during the period of this ruling.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 128-15
Income Tax Assessment Act 1997 section 128-20
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