Hello ATO Community - hope you can help. I have looked at similar previous questions posed, but am now a confused when comparing the answers with the information on the ATO website. My father passed on 22 May 2024. As per his wishes, my mother sold his CBA shares (13 June 2024) to pay for the funeral costs.
My question is about how to calculate the CGT for my mother's tax return. Is the capital gain based on the share value at the time of his death compared with the value at the time of the sale of the shares, or, is the capital gain based on the duration of my father's ownership of the shares through to their sale?
Background: My father acquired the shares as part of the Colonial Mutual Life Insurance demutualisation in 1996 (with a calculated cost base of $3.31 per share, followed by the buy out by CBA & subsequent cost base became $9.457143 per share).
Sale: My father had 108 CBA shares, which my mother received for $13,405.92. Even though my father never purchased the shares per se, do I use the $9.457132 x 108 as the cost base to calculate the CGT? The shares sold as $125.3575 per share & the cost to sell the shares was $132.69.
So is the following calculation correct?
$13,405.92 -$1,021.37 = $12,384.55
then apply the 50% discount,
so the CGT amount is $6192.27
Or
Share value at the time of my father's death (so at the time my mother inherited them) $122.07 x 108 = $13,183.56
Share value at the time of the sale of the shares $125.3575 x 108 = $13,538.61
Difference = $355.05
Thank you!
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