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Edited version of private advice
Authorisation Number: 1052088405569
Date of advice: 2 March 2023
Ruling
Subject: CGT - deceased estates
Question
Will any capital gain or loss you make due to the transfer of the Property to the beneficiaries be disregarded?
Answer
Yes. Any capital gain or capital loss a legal personal representative makes if an asset passes to a beneficiary in your estate is disregarded. This is in accordance with Law Administration Practice Statement PS LA 2003/12 Capital gains tax treatment of the trustee of a testamentary trust not to recognise any taxing point in relation to assets owned by a deceased person until they cease to be owned by the beneficiaries named in the will.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The Deceased died in 19XX.
At the time of their death, they resided at the Property. They acquired the Property prior to 20 September 1985.
The Property was never used to produce assessable income.
The Deceased's adult children are the executors of their estate (the Estate).
The Deceased's will provided that their children receive the whole of the Deceased's estate in equal shares, following payment of any debts and expenses.
Legal title to the Property is held by the Deceased's adult children as executors of the Estate.
The executors will transfer the Property to the adult children of the Deceased as beneficiaries.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 128-15(3)