Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 1/4)
Character Range: 2733632–2736333

4                                                 One you *acquired before 20 September 1985                                                                                                                 the *market value of the asset on the day you died      the market value of the asset on the day you died

Note 1: Section 70‑105 has a general rule that the person on whom the trading stock devolves is taken to have bought it for its market value. There are some exceptions though.
Note 2: Subdivision 118‑B contains other rules about dwellings acquired through deceased estates.
Note 3: The rule in item 3 in the table does not apply to a dwelling that devolved to your legal personal representative, or passed to a beneficiary in your estate, on or before 7.30 pm on 20 August 1996: see section 128‑15 of the Income Tax (Transitional Provisions) Act 1997.

Further rule for a beneficiary
 (5) A beneficiary can include in the *cost base or *reduced cost base of the asset any expenditure that the *legal personal representative would have been able to include at the time the asset *passes to the beneficiary. The beneficiary can include the expenditure on the day the representative incurred it.
Example: You die on 1 May 1995 owning land. On 15 June 1995 your legal personal representative pays $500 council rates for the land.
 On 31 July 1995 your representative transfers it to a beneficiary in your estate, who is taken to have acquired it on 1 May 1995.
 The beneficiary can include the $500 in the third element of the cost base of the land. It is included on 15 June 1995.

Collectables and personal use assets
 (6) The *legal personal representative or beneficiary is taken to have *acquired a *collectable or a *personal use asset if:
 (a) you acquired it on or after 20 September 1985; and
 (b) it was a *collectable or a *personal use asset (as appropriate) in your hands when you died.
Note 1: Capital losses from collectables can be used only to reduce capital gains from collectables: see section 108‑10.
Note 2: Capital losses from personal use assets are disregarded: see section 108‑20.

128‑20  When does an asset pass to a beneficiary?
 (1) A *CGT asset passes to a beneficiary in your estate if the beneficiary becomes the owner of the asset:
 (a) under your will, or that will as varied by a court order; or
 (b) by operation of an intestacy law, or such a law as varied by a court order; or
 (c) because it is appropriated to the beneficiary by your legal personal representative in satisfaction of a pecuniary legacy or some other interest or share in your estate; or
 (d) under a deed of arrangement if:
 (i) the beneficiary entered into the deed to settle a claim to