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Edited version of your written advice
Authorisation Number: 1051507500660
Ruling
Subject: Capital gains tax: transfer of shares: deceased estate
Question 1
Will any capital gain which may arise to the estate be disregarded upon transfer of the shares to the testamentary trusts?
Answer 1
Yes. The Commissioner considers that if any capital gain arises to the estate, it is disregarded by the operation of Division 128 of the Income Tax Assessment Act 1997.
This ruling applies for the following periods:
Year ending 30 June 2019
Year ending 30 June 2020
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased owned shares in several companies.
The will of the deceased leaves the residuary estate to two separate testamentary trusts.
The above shares form part of the residuary estate.
Each of the shares will be split into two shares and transferred equally to the testamentary trusts.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-55
Income Tax Assessment Act 1997 section 120-20
Income Tax Assessment Act 1997 section 128-10