Private ruling: CGT - deceased estate
Date of advice: 27 October 2025
Published: 15 December 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain you made on the disposal of your interest in the Property? | A1: Yes. You sold your one-half interest in the Property as beneficiary of Parent 2's estate. Therefore, you can apply subsection 118-195(1) of the Income Tax Assessment Act 1997 to disregard the capital gain you made on the disposal of the Property.

Relevant facts and circumstances: After 1985, your parents bought the Property as joint tenants. The Property size was less than 2 hectares. In 20XX, you moved into the Property. In 20XX, your spouse moved into the Property. In 20XX, Parent 1 passed away. Parent 2 received Parent 1's interest in the Property as the surviving joint tenant. In 20XX, you purchased Property 2. You didn't move into Property 2 until 20XX. IN 20XX, Parent 2 passed away. Parent 2's Will appointed you as executor and named you and your sibling residuary beneficiaries in equal shares. The Property was Parent 2's main residence and was not used to produce income just before their death. The Property did not transfer to you and your sibling as stated in the Will. In 20XX, you, your spouse, and your sibling executed a deed (the deed). In 20XX, at the same time the deed settled, you received your one-half interest in the Property as beneficiary of Parent 2's estate. You and your spouse lived in the Property from Parent 2's death until it was leased in 20XX. You chose to continue to treat the Property as your main residence when you and your spouse moved to Property 2. From 20XX, the Property was leased. The Property sale settled in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 subsection 118-195(1) | Income Tax Assessment Act 1997 section 128-15 | Income Tax Assessment Act 1997 section 128-20