Income Tax Assessment Act 1997
CGT event K3 happens if you die and a *CGT asset you owned just before dying *passes to a beneficiary in your estate who (when the asset passes):
(a) is an *exempt entity; or
(b) is the trustee of a *complying superannuation entity; or
(c) is a foreign resident.
(d) (Repealed by No 169 of 1999)
(e) (Repealed by No 41 of 2005)
If the asset passes to a beneficiary who is a foreign resident, CGT event K3 happens only if:
(a) you were an Australian resident just before dying; and
(b) the asset (in the hands of the beneficiary) is not *taxable Australian property.
The time of the event is just before you die. 104-215(4)
A capital gain is made if the *market value of the asset on the day you died is more than the asset ' s *cost base. A capital loss is made if that market value is less than the asset ' s *reduced cost base.
The trustee of the estate must include in the date of death return any net capital gain for the income year when you died.Exception 104-215(5)
A *capital gain or *capital loss is disregarded if you *acquired the asset before 20 September 1985.
There is also an exception for certain philanthropic testamentary gifts: see section 118-60 .
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