Commonwealth Consolidated Acts Commonwealth Consolidated ActsFull exemption for trustee unless sells asset for proceeds etc.
(1) A * capital gain or * capital loss you make from a * CGT event is disregarded if:
(a) section 118 - 220 applies to you in relation to the CGT event; and
(b) as a result of the CGT event, an entity * acquires the * CGT asset:
(i) as trustee of an implied trust arising because of the deceased's death; or
(ii) as a beneficiary of the relevant trust referred to in paragraph 118 - 220(e).
Exemption for beneficiary, or trustee selling asset for proceeds etc.
(2) If:
(a) section 118 - 220 applies to you in relation to a * CGT event, but paragraph (1)(b) does not; or
(b) section 118 - 222 applies to you in relation to a CGT event;
the amount of the * capital gain or * capital loss that you would have made apart from this section from the CGT event is decreased by an amount that is reasonable.
(3) In determining what is a reasonable decrease:
(a) if section 118 - 220 applies to you, but paragraph (1)(b) does not--treat yourself as being an individual who owned the * CGT asset as the trustee of the deceased's estate; and
(b) if section 118 - 222 applies to you--treat yourself as being an individual and treat the CGT asset or your * ownership interest in it as having * passed to you as a beneficiary in the deceased's estate; and
(c) have regard to the principles in this Subdivision, and to:
(i) the extent that the applicable * dwelling was the deceased's main residence for the relevant period; and
(ii) the extent that the dwelling was used for the * purpose of producing assessable income during the relevant period.
(4) For the purposes of subparagraph (3)(c)(i), assume the * dwelling was not the deceased's main residence on each day the trust referred to in paragraph 118 - 220(b) was not a * special disability trust.
(5) However, subsection (2) does not apply if, just before the deceased's death, the deceased was an * excluded foreign resident.