Shares have been transferred from a SMSF to a deceased estate as the final part of the clean up of the estate. They are sitting in a managed fund waiting to be transferred to the beneficiaries. What is the date & cost base to be used for the shares from the SMSF & then from the estate? One of the beneficiaries is a non resident. From my readings that means the final return of the deceased will need to be amended?
Hey @AuntyK,
When shares pass from a SMSF to a deceased estate, any capital gain or loss at that point is generally disregarded, unless specific rules apply.
If the estate later sells the shares, the estate includes any capital gain or loss in its own tax return.
If the shares are transferred to a beneficiary instead, no capital gain or loss is recognised on that transfer. The beneficiary then uses the appropriate cost base rules for inherited assets, which may be the deceased’s cost base or the market value at the date of death, depending on when the shares were originally acquired.
The beneficiary can also include certain costs in their cost base that the executor would have been able to include if they had sold the shares (for example, some legal or transfer costs).
For non-resident beneficiaries, special rules can apply. If the shares are not taxable Australian property, a capital gain or loss may be triggered in the deceased’s final tax return before the asset passes to the non-resident.
You generally don’t need to amend the deceased’s final tax return just because a beneficiary is a non-resident. The key point is:
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