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

Ruling: Q1: Is the first element of the cost base of shares acquired on the death of 4 th person the Market value of the shares on the death of 2 nd person? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 128-10 | Income Tax Assessment Act 1997 Section 128-15 | Income Tax Assessment Act 1997 Section 128-20

Reasons for decision: Summary: In your situation as trustee, you acquired your shares from a chain of deceased estates. As shares were initially acquired before 20 September 1985, as trustee you are taken to have acquired the asset on the 4 th person died. When calculating your capital gains tax on your shares, the first element of your cost base is the market value of the asset on the day the 2nd person died.

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. | Relevant facts: You are the executor of the estate of the 4 th person. | The deceased inherited a number of shares from a chain of deceased's estates which were initially acquired before 20 September 1985. | The 1 st deceased died prior to 19 September 1985. | The 2 nd and 3 rd person passed after 19 September 1985.