Private ruling: CGT - deceased estate
Date of advice: 14 November 2024
Published: 13 January 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the 50% capital gains tax (CGT) discount apply to the capital gain from the sale of the property? | A1: Yes, applying the relevant provisions of Division 115 of the Income Tax Assessment Act 1997 results in the 50% CGT discount being applicable to the capital gain made on the sale of the property.

Relevant facts and circumstances: The deceased, a non-resident of Australia, passed away on DD MM 20YY. Probate was granted on DD MM 20YY. The executors are non-residents, and the estate is a non-resident estate. The deceased owned a property in Australia (the property). The deceased acquired the property in 19XX as a sole proprietor and the property was never income producing. On DD MM 20XX the executors (by their attorney) signed a contract for the sale of the property. All beneficiaries of the estate are non-residents for Australian taxation purposes. No beneficiaries were presently entitled to the income of the estate or made specifically entitled to any capital gains for the year ended 30 June 20XX. There have been no other transfers of property to the estate. The estate has not borrowed or lent out any property or money.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 115 | Income Tax Assessment Act 1997 paragraph 115-10(c) | Income Tax Assessment Act 1997 section 115-25 | Income Tax Assessment Act 1997 section 115-30 | Income Tax Assessment Act 1997 subparagraph 115-100(a)(ii) | Income Tax Assessment Act 1997 section 115-120