2024 Capital Gains Tax (CGT)

Capital gains tax aspects of deceased estates: Assets co-owned by spouses

Published Date: 20 Feb 2024


The capital gains tax (CGT) rules relevant to deceased estates are riddled with anomalies. The purpose of this article is to explore select issues relating to the CGT aspects of deceased estates in the context of assets co-owned by spouses with a view to exposing some of these anomalies. With this objective in mind, the article explores, in respect of such coowned assets, the Div 128 (of the Income Tax Assessment Act 1997 (Cth)) consequences of “double death”, the operation of CGT event K3 (including in the event of double death) and the operation of the main residence exemption on death where spouses lived separately. By exploring these issues, the article shows that there is an imperative for the government to review the operation of the CGT rules in the context of deceased estates and remedy technical deficiencies to provide certainty to taxpayers and prevent unintended tax outcomes.

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2024 Capital Gains Tax (CGT)

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