Private ruling: CGT - deceased estate
Date of advice: 22 March 2024
Published: 6 May 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX XX 20XX

Ruling: Q1: Is the Testamentary Trust deemed to have acquired X (the Property) under the deceased's will in accordance with subsection 118-210(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner agrees Property 2 was acquired under the will of the deceased in accordance with our view in Taxation Determination (TD) 1999/74 Income tax: capital gains: in what circumstances does a trustee of a deceased estate acquire an ownership interest in a dwelling 'under the deceased's will' for the purposes of subsection 118-210(1) of the Income Tax Assessment Act 1997?

Relevant facts and circumstances: Person A passed away on XX XX 19XX. As at the date of death, Person A (the Deceased) owned the dwelling located at X (Property 1). Property 1 was situated on less than two hectares of land and was the main residence of the Deceased as at the date of their death in 19XX. The Deceased left a will directing X (the Trustee) to hold the residue and remainder of the estate upon trust for their child, Person B (the Life Tenant). On XX XX 19XX probate was granted to the Trustee in accordance with the will. The Life Tenant elected to reside in Property 1 as their main residence in accordance with the will. On XX XX 19XX Property 1 was sold by the Trustee and a replacement property (Property 2) was purchased with the proceeds of sale from Property 1. Property 2 was purchased within the X Testamentary Trust. Property 2 is situated on less than two hectares of land and was the main residence of the Life Tenant for the remainder of their life. Person B passed away on XX XX 20XX. Property 2 remained vacant until the property was transferred to the remaining beneficiaries in XX 20XX. The Property 2 title was transferred to the remaining beneficiaries as tenants in common in XX 20XX in accordance with the will.



Relevant legislative provision: Income Tax Assessment Act 1997 section 118-210