CGT - cost base of overseas shares

I recently inherited some overseas shares from a relative who passed away last year and he was an Australian citizen but non-resident since 20 years ago.

Just wondering what will be the cost base if I sell the shares?

Thanks in advance.

 

market value as of the date of death - assuming you are a tax resident

 

Actually that might be wrong. It is the cost base of the deceased person usually - being a non-resident might not change this or it might

 

This means the cost base should be the original purchase price of the shares even if the deceased person was a non-resident?

 

Normally the cost base would be the cost base of the deceased - which would be the purchase price and any brokerage generally.
Being foreign shares doesn't change this I think.

They weren't acquired by the deceased prior to CGT in 1985 were they?

Does the executor have the power to sell them and give you the cash?

 

The shares were acquired after the deceased became a non-resident which was probably around year 2000.

Yes, the executor can sell the shares and give me cash. Does the executor need to pay any CGT in this case?

 

CGT rules for non resident estates?

 

Is the estate a resident trust?

 

No, the shares are just publicly listed company shares.

 

Hi Mike, the shares were acquired around 2000. The deceased was an Australian citizen but became a non-resident 20 years ago. In this case what will be the cost base?

 

ahh ok aussie citizen then became non resident and now inherited...much more complex.

 

Where is the executor?

 

The executor is an Australian resident. Am I correct that the executor is just selling the shares on behalf of the deceased (who was a non-resident), so there should be no CGT involved?

 

It is a resident trust for tax. He should have appointed a non-resident executor for those shares perhaps. Greenhills case might apply

 

I am a bit confused... I don't think there was any trust setup. Do you have some more details regarding Greenhills case?

 

deceased estates are actually trusts

 

@Terry_w, am I correct that the deceased estate only becomes resident trust as at the date of death?

According to Income Tax Assessment ACT 1997 - sect 855.50, shouldn't the cost base be the market value at the time it becomes a resident trust?

INCOME TAX ASSESSMENT ACT 1997 - SECT 855.50 Trust becomes a resident trust.

 

no I don't think so.

You will need to consider 2 things
a) passing of the shares from the deceased to the LPR, and
b) passing from the LPR to you.

 

A non-resident deceased estate that sells shares to give the proceeds to a beneficicary would not include a capital gain on listed AU shares as Net trust Income in an Australian return if one were to be prepared. I dont beleive it would need to.

If a non-resident deceased estate transfers the shares to a resident beneficiary the costbase of the shares is the historical costbase of the shares adjusted for the exchange rate on the date of death. The CGT on shares and the forex gain or loss as separate tax events

 

if only there was a second will with a non-resident executor - not always possible but there would have been no tax payable in Australia.