Income tax: capital gains: if a post-CGT asset bequeathed to a legal personal representative/beneficiary (LPR/B) is disposed of within 12 months of the LPR/B's acquisition, in which circumstances is indexation available?

TD 94/79 explains that if the LPR/B disposes of an asset within 12 months of the LPR/B's acquisition but after more than 12 months from when the deceased acquired the asset, the benefits of indexation are available. However, if the LPR/B disposes of the asset within 12 months of the LPR/B's acquisition and within 12 months of the deceased's acquisition, the LPR/B is denied any benefits of indexation.

Indexation applies only in respect of expenditure incurred at or before 11:45am on 21 September 1999. For expenditure incurred after that time, a taxpayer may be eligible to discount their capital gain under Division 115 of the Income Tax Assessment Act 1997 .

TD 94/79 has limited ongoing relevance and is therefore withdrawn without replacement.