Private ruling: : CGT - deceased estate
Date of advice: 3 August 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is capital gains tax (CGT) applicable on the sale of the two inherited properties? | A1: No. You inherited a share of the properties via a deceased estate. While legal title was not transferred to you until sometime after the deceased died, subsection 128-15(2) of the Income Tax Assessment Act 1997 provides that your acquisition date will be the date of the deceased's death. As the deceased died prior to 20 September 1985, the properties are pre-CGT assets and are exempt from CGT.

Relevant facts and circumstances: You are an Australian resident. The deceased passed away prior to 20 September 1985 in 19XX. Under the deceased's will, you and your siblings inherited investment properties located in Country A. The title of the properties were transferred to you and your siblings after 20 September 1985 in 19XX. No major capital improvements were made to either property after 19 September 1985. You and your siblings sold the properties during the 20XX income year. You and your siblings paid capital gains tax in Country A for the sale of the properties.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 128-15(2)