Private ruling: Property inheritance
Date of advice: 4 October 2024
Published: 18 November 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DD MM 20YY

Ruling: Q1: Is the property considered an inherited asset as per section 128-20 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. As you inherited the property in accordance with the will of the deceased, it is considered an inherited asset.

Relevant facts and circumstances: The deceased passed away on DD MM 20YY. The property is located at XXXX (the property). The property was purchased on DD MM 19YY by the deceased as tenants in common with another family member. On DD MM 19YY the land title was amended to provide the deceased an estate for life with a remainder clause adding you to the title to allow the property to transfer to you as remainderman. The deceased lived at the property from the date it was purchased until they moved into care in MM 20YY. From MM 20YY until the date they passed away, the property was still considered their main residence. The property remained unoccupied during this time. The will of the deceased specified that you would inherit the property when they pass away. Before the date the deceased passed away, you had no legal or financial ownership of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 128-20