Private ruling: Cost base elements
Date of advice: 12 March 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 01 July 2017

Ruling: Q1: Is the first element of the cost base of the dwelling the market value at the date of death of the deceased? | A1: Yes, you are taken to have acquired the property for market value on the date of death in accordance with subsection 128-15(4) of the Income Tax Assessment Act 1997 (ITAA 1997).

Relevant facts and circumstances: The deceased acquired a dwelling. The dwelling was used as the main residence of the deceased. The deceased relocated to a nursing home. The deceased continued to treat the dwelling as their main residence. The dwelling was rented and a valuation was obtained The deceased passed away. You inherited a share in a dwelling. The dwelling continued to be rented. The dwelling was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 128-15(4) item 3