EV 1052296074512currentnon-binding advice

Capital gains tax

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Is relevant date the acquisition date of the property?

2

1 Yes. Based on the information provided to the Commissioner the acquisition date of the property is the relevant date. Question 2 Is the first element of the cost base for the property the market value on the relevant date? Answer 2 Yes. Based on the information provided to the Commissioner the first element of the cost base when calculating any capital gain or loss is the market value on the relevant date. Question 3 Will the 50% discount apply to the sale of the property? Answer 3 Yes. Based on the information provided to the Commissioner the 50% discount will apply when calculating any capital gain on the property. This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: 1 July 20XX

3

The deceased passed away several years ago. Probate was granted appointing Individual Z (The Executor) of the estate of the deceased. Individual Y died a number of decades ago. At the time of Individual Y's death, he owned the property. Following proceedings in the Supreme Court, it was determined that the deceased had become the owner of the property, by adverse possession. The Supreme Court made orders that the Executor of the Estate of the deceased become the registered proprietor of the property. The property situated was sold by the Executor by auction.

4

Income Tax Assessment Act 1997 section 110-25 Income Tax Assessment Act 1997 section 115-25