My mother passed on 27 September 2023 (date of death). In her will she left all her assets to be divided amongst her four children. She holds a parcel of 4000 shares to be divided equally amongst her beneficiaries who are all Australian residents and none of which are a tax advantaged entity.
From the ATO website and answers from the ATO community I have read the following:
Normally, the disposal of shares is a capital gains event and subject to taxation. In deceased estates, however, there are no capital gains implications unless the shares are transferred under the will to a tax-advantaged entity (such as a charity), or to a foreign resident.
The shares will still be subject to taxation if/when the beneficiaries who are Australian residents for tax purposes dispose of them. Their cost base of the shares are taken to be the market value on the date of passing.
Please confirm or anwer the following:
If the shares are sold at the time of the granting of probate by the executor of the estate say for example 12 December 2023, the cost base for calculating any capital gains/loss is from 27 September 2023 (date of death) to 12 December 2023? In this case are the shares subject to 50% CGT as the period is less than 12 months?
If we transfer the shares and then sell them after 12 months, is the amount of CGT that will apply be the difference between the price of the share as at 27 September 2023 (the date of death) and the price of the share at the date of sale?
Any advice you can provide is appreciated.
7,093 views
1 replies