Taxation Determination

TD 95/47

Income tax: capital gains: how is a net capital loss treated if it is unrecouped by a taxpayer at the date of his or her death?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1014550

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. A capital loss of a deceased taxpayer may be offset against any capital gain of the taxpayer in his or her final individual income tax return. Any unrecouped net capital loss lapses on the death of the taxpayer.

2. This (unrecouped) net capital loss cannot be:

(a)
offset against other income in the final income tax return of the deceased; or
(b)
carried forward into the first income tax return of the trust estate to be offset against future capital gains made by the trust estate; or
(c)
used by the beneficiaries of the deceased estate to be offset against their own capital gains.

Commissioner of Taxation
30/8/95

Previously issued as Draft TD 93/D292

References

ATO references:
NO CGTDET98; NAT 95/6431-4

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 95/46
IT 2622

Subject References:
date of death
deceased estates
losses
unrecouped net capital losses

Legislative References:
ITAA Pt IIIA

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