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Edited version of private advice
Authorisation Number: 1051527918057
Date of advice: 12 June 2019
Ruling
Subject: Capital gains tax
Question
Will the first element of the cost base and reduced cost base of the property be its market value at the time you acquired it?
Answer
Yes. In this case as you did not deal at arm's length with the previous owner when you acquired it, the first element of your cost base and reduced cost base for the property is its market value at the time of acquisition. Further information on elements of the cost base and reduced cost base can be found by searching 'QC 52174' on ato.gov.au
This ruling applies for the following periods:
Year ending 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
Year ending 30 June 2023
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You bought a property from your relative.
You paid $X! for the property.
At the time you acquired it, the property's market value was higher than the amount you paid.
You will sell the property during the period of this ruling.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 112-20