Deceased Estate

 

Q&A

Question :

Mr Lin passed away in July 2019 and he was non-resident owning 4 investment properties in Australia. 

One property is Pre-CGT property and the other three were purchased in the late 1990s. 

The properties are about to be transferred to his wife Mrs Lin. She is the sole beneficiary and also a non-resident. 

Please advise her about the tax implications for herself. 

 

Answer :

Any capital gain or loss on the transfer of the properties to the beneficiary of the deceased estate under the deceased’s will by the executor of the deceased estate should be disregarded.

Note: if the deceased’s post-CGT assets passed from an Australian resident to a foreign resident, the capital gain/loss were not be disregarded (conditions apply). 

The beneficiary would acquire the pre-CGT property of the deceased at market value at the date of the deceased’s death. 

The beneficiary would acquire the three post-CGT properties of the deceased for a cost base equal to the deceased’s cost base of the properties at the date of death.

Refer to s 128-15. 

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