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Edited version of private advice
Authorisation Number: 7920166236693
Date of advice: 10 October 2024
Ruling
Subject: CGT - deceased estates - foreign property
Question
Will the amount you received from your late mother's estate from the sale of her interest in her residence be included in your assessable income under section 99B of the Income Tax Assessment Act 1936?
Answer
No, the amount you received from your late mother's estate from the sale of her interest in her residence will not be included in your assessable income under section 99B of the Income Tax Assessment Act 1936 as that amount represents corpus of the trust under paragraph 99B(2)(a), being your late mother's estate.
This ruling applies for the following period:
Income year ended 30 June 20YY
The scheme commenced on:
XXXX
Relevant facts and circumstances
You are a resident of Australia for tax purposes.
Your late parent A bought a property in approximately XXXX in country A, as the primary residence for them and your parent B.
Your parent A paid for the property out of their own funds.
Your parent A passed away on XXXX.
Your Parent B subsequently passed away on XXXX.
The property was the main residence of your parents and used only as their residence and not to produce income.
Just prior to their death, your parent A was a resident for tax purposes of country A all her life.
You were the executor of your parent A's will.
Based on your religion, you could only sell their property 1 year after the death of your surviving parent, your parent B.
The agreement to sell was entered into in March 20YY and the property settled on 14 June 20YY.
Your parent A's will stated that the proceeds from the sale of the property were to be divided equally between yourself and your two siblings.
You also had to pay capital gains tax of approximately $XX,000 AUD in country A, as the sale of the main residence was not exempt from CGT in country A, whether inherited or otherwise.
You wish to bring your share of the proceeds to Australia.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99B