Private ruling: Capital gains tax - deceased estate
Published: May 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Is the interest in the property which passed to you as a beneficiary under your parent's will considered to be a pre capital gains tax (CGT) asset? | A1: No.

Relevant facts and circumstances: Your parents acquired a property some time in the 1950's as joint tenants. Your parent A died some time in the 1990's. Your parent B acquired your parent A's interest in the property. Your parent B died some time later leaving the property to their children. The property has never been rented or used as a principal primary residence. The property was used as a holiday home. The property has now been disposed of.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 128-15 | Income Tax Assessment Act 1997 Section 128-20 | Income Tax Assessment Act 1997 Section 128-50

Reasons for decision: Summary: If you acquire an asset owned by a deceased person as their legal personal representative or beneficiary, you are taken to have acquired the asset on the day the person died. Therefore, upon the death of your parent B you are taken to have acquired your interest in the property on your parent B's date of death in 2004, making the property a post CGT asset. Please note: for the purpose of establishing the cost base of the property, your parent B acquired two interests in the property. Your parent B's first interest (50%) was acquired some time in the 1950's when they and your parent A acquired the property, a pre-CGT interest. Your parent B then acquired their second interest (50%) some time in the 1990's upon the death of your parent A, a post CGT interest. For more information of deceased estates please see the enclosed information which has been taken from the Guide to capital gains tax 2010-11 (NAT 4151). Information is also available on our website - www.ato.gov.au.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.