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Do legal costs incurred by the executor of a deceased estate in representing a family member who was assaulted form part of the cost base of the estate's assets pursuant to subsection 110-25(6) of the Income Tax Assessment Act 1997 (ITAA 1997)?

No, legal costs incurred in representing the family member do not form part of the cost base of the estate's assets under subsection 110-25(6) of the ITAA 1997.

The executor, in their capacity as solicitor for the late taxpayer's family, represented a relative of the deceased who was assaulted by another family member.

The legal costs incurred in representing someone in relation to an alleged assault are not directly related to the assets of the deceased estate. Therefore they do not form part of the cost base of the assets of the estate as they are outside the operation of section 110-25 of the ITAA 1997.