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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-K - Other CGT events  

SECTION 104-215  Asset passing to tax-advantaged entity: CGT event K3  

 ITAA 36

104-215(1)  

CGT event K3 happens if you die and a *CGT asset you owned just before dying *passes to a beneficiary in your estate who (when the asset passes):


(a) is an *exempt entity; or


(b) is the trustee of a *complying superannuation entity; or
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(c) is a foreign resident.
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(d) (Repealed by No 169 of 1999)
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(e) (Repealed by No 41 of 2005)

104-215(2)  

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If the asset passes to a beneficiary who is a foreign resident, CGT event K3 happens only if:


(a) you were an Australian resident just before dying; and
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(b) the asset (in the hands of the beneficiary) is not *taxable Australian property.
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104-215(3)  

The time of the event is just before you die.

104-215(4)  

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A capital gain is made if the *market value of the asset on the day you died is more than the asset ' s *cost base. A capital loss is made if that market value is less than the asset ' s *reduced cost base.

Note:

The trustee of the estate must include in the date of death return any net capital gain for the income year when you died.

Exception

104-215(5)  

A *capital gain or *capital loss is disregarded if you *acquired the asset before 20 September 1985.

Note:

There is also an exception for certain philanthropic testamentary gifts: see section 118-60 .


 



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