Private ruling: Capital gains tax
Date of advice: 12 June 2019
Published: July 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the first element of the cost base and reduced cost base of the property be its market value at the time you acquired it? | A1: Yes. In this case as you did not deal at arm's length with the previous owner when you acquired it, the first element of your cost base and reduced cost base for the property is its market value at the time of acquisition. Further information on elements of the cost base and reduced cost base can be found by searching 'QC 52174' on ato.gov.au

Relevant facts and circumstances: You bought a property from your relative. You paid $X! for the property. At the time you acquired it, the property's market value was higher than the amount you paid. You will sell the property during the period of this ruling.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 112-20