Taxation Determination

TD 94/79W

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?

• Please note that the PDF version is the authorised version of this withdrawal notice.
  TD 94/79 has been withdrawn as part of a project to review public rulings.
  This document has changed over time. View its history.

Notice of Withdrawal

Taxation Determination TD 94/79 is withdrawn with effect from today.

1. 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.

2. 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.

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 TD 94/79 has limited ongoing relevance and is therefore withdrawn without replacement.

Commissioner of Taxation
27 June 2018

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

References

ATO references:
NO 1-D75OWX3

Related Rulings/Determinations:

TD 94/75

Subject References:
beneficiary
capital gain
consideration
cost base
death
indexed cost base

Legislative References:
ITAA 160X(5)(b)
ITAA 160X(5)(b)(i)
ITAA 160X(6)
ITAA 160Z
ITAA 160Z(3)
ITAA 160Z(4)