Private ruling: CGT - deceased estate - K3 Event
Date of advice: 3 February 2020
Published: March 2020
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Are capital gains or losses that are made when shares owned by the deceased pass from the deceased estate to the beneficiary disregarded under subsection 118-60(1) of the Income Tax Assessment Act 1997 (ITAA 1997) if the beneficiary is a deductible gift recipient (DGR)? | A1: Yes. In this case, both of the residual beneficiaries are deductible gift recipients and the deceased would have been entitled to a deduction under section 30-15 of the ITAA 1997 for the gift of shares had they been made during their lifetime. Accordingly, any capital gains or losses made from the disposal are disregarded.

Relevant facts and circumstances: The deceased died on DDMMYYYY. The deceased bequeathed the residue of their estate to an endorsed Deductible Gift Recipient (DGR). The residue of the estate includes Shares The Trustee intends to transfer the Shares from the Estate to the DGR in settlement of their entitlement under the will of the deceased.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 30-15 | Income Tax Assessment Act 1997 Section 104-215 | Income Tax Assessment Act 1997 Section 118-60 | Income Tax Assessment Act 1997 Section 995-1