Private ruling: CGT - deceased estate
Date of advice: 13 May 2026
Published: 17 August 2026
Ruling period: Year ending DD/MM/20YY
Date scheme commenced: DD/MM/20YY

Ruling: Q1: Can you disregard any capital gain made on the disposal of the property? | A1: Yes. Section 128-15 of the Income Tax Assessment Act 1997 (ITAA 1997) sets out what happens if a CGT asset owned by a deceased person immediately before their death devolves to their legal personal representative or passes to a beneficiary of the deceased estate. Relevantly, subsection 128-15(2) provides that the legal personal representative or beneficiary is taken to have acquired the asset on the date of the deceased's death. Therefore, XXX, as Legal Personal Representative, are taken are taken to have acquired the property at date of death of the deceased, which was DD/MM/19YY. Subsection 104-10(1) provides that CGT event A1 happens if you dispose of a CGT asset. However, any capital gain or capital loss you make on disposal of a CGT asset acquired prior to 20 September 1985 is disregarded pursuant to paragraph 104-10(5)(a).

Relevant facts and circumstances: On DD/MM/19YY, the deceased passed away, The deceased died interstate. The deceased's spouse pre-deceased them, and they were survived by their adult children Person A, Person B, Person C and Person D. At time of death, the deceased owned a property at XXX. The deceased acquired the property jointly with their late spouse in MM/19YY. The deceased acquired their share upon their death, by right of survivorship. After the deceased's death, the property was occupied by their children, especially Person A and Person C. Person A moved into aged care in MM/20YY. The property was never used for income producing purposes by the deceased or their estate. The property is less than 2 hectares. On DD/MM/19YY, Person A obtained a grant of letters of administration with respect to the deceased estate. The estate administration was not completed and the property in the estate was not sold. The title of the property was however legally transferred to Person A as a legal personal representative the deceased's estate on DD/MM/19YY. Person A is XX years old and is now a person under a disability. Their financial affairs are managed by their administrator Company A who were appointed by the relevant State Civil and Administrative Tribunal on DD/MM/20YY. By reason of their disability, Person A is unable to competently progress the administration of the deceased's estate. Person A is the only remaining child of the deceased. In MM/20YY, to finalise the administration of the deceased's estate and to progress the sale of the property, Company A had commenced an application for removal of Person A as administrator and trustee of the deceased's estate, with Company A to be appointed in their place. The court order to this effect was made on DD/MM/20YY. On DD/MM/20YY, the exemplification order by the Supreme Court was received. Company A then proceeded to make an application to the Registrar of Titles for the lost title. On DD/MM/20YY, a new title was issued At this point, Company A commenced clearing the property in readiness for sale. Company A engaged a cleaning company on DD/MM/20YY and requested a property valuation on the same day. On DD/MM/20YY, a fully signed auction authority was provided to the Real Estate Agent. On DD/MM/20YY, the property was listed for sale. On DD/MM/20YY, the property was sold at auction. On DD/MM/20YY, settlement occurred. No capital improvements were made to the property before or after the deceased's death.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 104-10(5)(a). | Income Tax Assessment Act 1997 subsection 128-15(2).