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Edited version of private advice
Authorisation Number: 1051940748199
Date of advice: 18 January 2022
Ruling
Subject: CGT assets
Question
Was the property acquired before 20 September 1985?
Answer
Yes, based on the evidence you provided the commissioner is satisfied that the property was acquired by the deceased before 20 September 1985 and is therefore a pre-CGT asset. You, as the trustee, can disregard a capital gain on the sale of the property under section 118-195 of the Income Tax Assessment Act 1997.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired the property.
The deceased was the sole proprietor and was registered as owner just after 20 September 1985.
The Transfer of Land document for the property was signed by the transferor and transferee just before 20 September 1985.
The deceased emailed her accountant in 20XX stating that the property was purchased before 20 September 1985 and included the purchase price.
The deceased passed away recently.
Probate was granted to State Trustees Ltd (STL).
The property was sold at Auction approximately one year after the deceased passed away, with settlement occurring a few months after.
STL has been unable to obtain a copy of the contract for sale for the purchase of the property.
The property was used as an investment property of the deceased until it was sold.
Relevant legislative provisions
Section 118-195 Income Tax Assessment Act 1997