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Edited version of private advice
Authorisation Number: 1012633729549
Ruling
Subject: Capital Gains Tax - Deceased Estate
Question and answer
Will a capital gain or loss you make from the disposal of the property disregarded under the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
This ruling applies for the following periods
Year ending 30 June 2014
The scheme commences on
1 July 2013
Relevant facts and circumstances
The deceased purchased the property before 1985.
The deceased died in 2013.
The property was passed on to the Trustee of the deceased estate.
The Trustee sold the property in 2014.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195.
Reasons for decision
A capital gain or capital loss is disregarded under section 118-195 of the ITAA 1997 where a CGT event happens to a dwelling which you owned as the trustee of a deceased estate, if:
• the deceased acquired the ownership interest before 20 September 1985, and
• your ownership interest ends within two years of the deceased's death.
In your case, the deceased acquired the property before 20 September 1985, the ownership interest passed to you, as the trustee of the deceased estate, after the deceased's death, and you sold the property within two years of the deceased's death.
Therefore, any capital gain or loss you make from selling the property will be disregarded.