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I have a CGT question regarding the inheritance of shares as a beneficiary to an estate.
It is not completley clear to me what the cost base will be for the beneficiary of inherited shares where the shares were all originally purchased by the deceased after the 20th September, 1985.
I interpret it as one of the following, or maybe there is another interpretation.
Which one is it?
Great to have you join our community so welcome!
Generally if a deceased person acquired their asset on or after 20 September 1985, the first element of the client's cost base (money or property given for the asset) and reduced cost base is taken to be the cost base (indexed where relevant) and reduced cost base of the asset on the day the person died. So based on the limited details it would appear Item 2. See link above under the heading Assets acquired by the deceased on or after 20 September 1985
Thanks for your post.
It would be hard to figure out the answer from the link provided without a lot of extra knowledge. There are 3 sentences, 2 have "may" in them and costbase as such is not mentioned at all.
I would take issue with the idea that there is no benefit though. The beneficiary can keep the shares at no cost and have all those fat dividends and franking credits