CGT & Deceased Estates

Discover how CGT applies to deceased estates including key rules, exemptions and practical strategies for better outcomes.

In this session, we cover:

• Capital gains in date of death return

  • CGT event K3

• Automatic CGT rollover on death of taxpayer

  • Different cost bases for deceased's pre and post CGT assets  

  • When executor triggers CGT

  • Special rules concerning joint tenancy

• Scope of Main Residence Exemption

  • Deemed market value

  • Additional main residence exemption for executor/beneficiary

  • Up to 3.5 years safe harbour rule

  • Otherwise occupation by spouse or beneficiary  

• Resolve beneficiary disputes by entering deed of family arrangement

• Tax complications where trustee or beneficiary is non-resident

  • Trustee assessed where resident discretionary trust distributes capital gain on non-TAP to a foreign resident 

  • Application of s. 99B where non-resident executor distributes gain on non-TAP amounts to resident beneficiary