Private ruling: Capital gains tax - deceased estate - disposal of property
Published: December 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1:  | A1: 


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 128-15 | Income Tax Assessment Act 1997 Section 104-10

Reasons for decision: Summary: Generally, you disregard any capital gain or capital loss you make on an asset if you acquire it before 20 September 1985. | Detailed Reasoning - Deceased estate: If you acquire an asset owned by a deceased person as their executor or beneficiary, you are taken to have acquired the asset on the day the person died. In your case, you acquired your interest in the property in mid 1980. CGT event A1 occurred when you and your siblings disposed of the property. As you acquired your interest in the property prior to 20 September 1985, you disregard your share of the capital gain made on the disposal of the property.

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. | Subject: Capital gains tax - deceased estate - disposal of property: Question: Is the capital gain made on the disposal of the property disregarded? | Relevant facts: Your parent A purchased a property in early 19XX. | Your parents established the property as their main residence. | Your parent A died in mid 19XX. | The trustees of your parent A's estate are two of your siblings. | Under your parent A's Will your parent B had the right to occupy the property during their life time. | You and your siblings are the beneficiaries under your parent A's Will, with each to receive an equal share of the estate. | Probate was granted to the trustees in mid 1981. | The title to the property was transferred to the trustees early 1982. | Your parent B passed away mid 20XX. | The property was disposed of by the beneficiaries under a contract which was exchanged sometime after early 2011. | Settlement occurred in mid 2011. | You have provided a copy of the following documentation to support your application and this document is to be read with and forms part of your application for the purpose of this ruling: | § Death Certificate - parent B | § Probate documentation - parent A | § last Will and Testament - parent A | § property title dated early 19XX | § last Will and Testament - parent B, and | § correspondence dated late 2009 from a solicitor.