Cost base for cgt of inherited shares

[#1]

I inherited shares on 20th Sept 2017.  The shares were all purchased on or after 21/1/2001. If I was to sell any of these shares is the cost base for CGT the date of the share being originally purchased e.g. 21/1/2001 or is it the date of transfer to me 20/9/2017?  In both cases I understand that I can apply the discount method for calcualtion of CGT as in both cases the sahres have been held for over 1 year.

[#2 · Accepted solution]

@Jheagney 

If the deceased acquired the asset on or after 20 September 1985, the first element of your cost base and reduced cost base is taken to be the deceased’s cost base and reduced cost base for the asset on the day they died.

You would also add to this any purchasing/selling costs.

[#3]

Thank you macfanboy.  Is the brokerage fee an example of a selling cost that you refer to?

The ATO laungauge of cost base & reduced cost base is npt clear.  I'm trying to use this link provided by the ATO and it appears to me that the shares I inherited would be treated as a gift and that my "cost base" would be their market value on the day I received them (i.e. 20 Sept 2017).  Is that correct?  ATO link and extract below ...

https://www.ato.gov.au/Individuals/Investing/In-detail/Investing-in-shares/Shares---helping-you-to-a...

Receiving shares

If you receive shares as a gift, you:

• treat shares as though you received them at their market value on the date you received them
• have certain tax obligations and entitlements.

If you dispose of shares you received as a gift, you must use the market value on the day that you acquired the shares as the first element of your cost base.

[#4]

@Jheagney 

Yes, the brokerage fee when purchased and when sold would count.

You would need to calculate the brokerage fee when bought divided by the number of shares you received.

For example, brokerage fee when bought = $100 for 100 shares, you received 50 shares so your brokerage is $50.

The link you provided lists inherited and gifted shares, you inherited them.

[#5]

The ATO site I cited says ...

“you treat inherited shares in the same way as any other capital gains tax assets”

While it goes into refer to a special instance where shares were acquired by the deceased prior to 1986 (not my case) I can only infer that in my situation the cost base is the date on which the deceased acquired the shares. A 50% reduction in the capital gain amount is applicable as they have been help for more than 1 year.

Is that the correct interpretation?

[#6]

@Jheagney 

Regardless you do qualify for the 50% discount.