INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160Y   ASSET BEQUEATHED TO TAX-ADVANTAGED PERSON ETC.  

160Y(1)   [Tax-exempt person]  

A person is a tax-exempt person in relation to the year of income for the purposes of this section if the person is a person whose income of the year of income is exempt from tax by virtue of a relevant exempting provision.

160Y(2)   [Beneficiary is tax-exempt person]  

Where:


(a) a person died on or after 20 September 1985;


(b) an asset that formed part of the estate of the deceased person and was acquired by the deceased person on or after that date has passed to a beneficiary in the estate of the deceased person; and


(c) the beneficiary is:


(i) a tax-exempt person in relation to the year of income; or

(ii) the trustee of a complying superannuation fund , a complying ADF, or a PST, within the meaning of Part IX, in relation to the year of income;

section 160X does not apply in respect of the asset but subsections (3) and (4) of this section have effect.

160Y(2A)   [Non-resident beneficiary]  

If:


(a) a person died after 2 April 1992; and


(b) an asset that formed part of the estate of the deceased person and was acquired by the deceased person on or after 20 September 1985 has passed to a beneficiary in the estate of the deceased person; and


(c) the deceased person was a resident; and


(d) the beneficiary is a non-resident; and


(e) the asset is not a taxable Australian asset;

section 160X does not apply in respect of the asset but subsections (3) and (4) of this section have effect.

160Y(3)   [Deemed disposal immediately before death]  

The asset shall be deemed for the purposes of this Part to have been disposed of by the deceased person, and acquired by the beneficiary, immediately before the death of the person for a consideration equal to the market value of the asset at the date of the death.

160Y(4)   [Asset passing from legal personal representative to beneficiary]  

If the asset passed from the legal personal representative of the deceased person to the beneficiary, then, on the subsequent disposal of the asset by the beneficiary, the cost base, the indexed cost base or the reduced cost base to the beneficiary of the asset for the purposes of this Part shall include any amount that would, if this section did not apply, have been included in that cost base, indexed cost base or reduced cost base, as the case may be, by virtue of paragraph 160X(3)(b) .


 

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