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Edited version of private advice
Authorisation Number: 1052130654781
Date of advice: 19 June 2023
Ruling
Subject: CGT - cost base
Question 1
Will the cost base for the property be the market value at the deceased's date of death per subsection 128-15(4) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. We accept the beneficial owner of the property was different to the legal owners. We accept that the deceased was the beneficial owner. They financially contributed to the purchase of the property, and the deed of assignment confirms the deceased beneficially owned the property. Therefore, the first element of the property's cost base will be its market value at the deceased's date of death (item 4 in the table in subsection 128-15(4)), Further information on a beneficial owner can be found in TD 2017/11 Income tax: who should be assessed to interest on bank accounts?
Question 2
If the cost base is not the market value at the deceased's date of death, what value should be used as the cost base?
Answer
Not applicable.
This private ruling applies for the following period:
Year ending 30 June 2023
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
The property located was purchased by the deceased and their two siblings as Joint Tenants before 20 September 1985.
The deceased paid an amount towards the purchase price and a loan was obtained for the remainder in the joint names, however, the deceased solely made loan repayments.
The sibling's names were on the title to protect the deceased, who was considered vulnerable, and they did not have an equitable interest in the property.
The deceased passed away XX June 20XX and the property passed to their siblings through survivorship.
The deceased's will specifically provided the property was to be gifted to their beneficiary.
Sibling A subsequently passed away leaving the property solely in Sibling B's name.
Sibling B passed away XX August 20XX, and the property transferred to their estate.
Through a Deed of Acknowledgement of Trust and Assignment dated XX November 20XX, it has been acknowledged by the executor of Sibling B's estate that the property was the deceased's.
The property was then transferred to the Public Trustee Legal Personal Representative for the deceased's estate and has now been transferred to the beneficiary.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 128-15(4)