Shares & Funds Inherited property and CGT

For shares purchased after 1986
1
Inherited shares are taken to be acquired as at date of death. If the deceased held them for over 12 months, they were eligible for discount capital gain. Does this eligibility carry through to me?

2
For shares acquired at $10 and sold for $5 the Capital loss carries through to me.

Is this correct? (ignore expenses )

3
For investment property purchased after 1986 the capital gain calculation on a $200,000 sold property originally purchased for $100,000 is

$100,000 x .5= $50000 .This is added to your income

Is this correct?
Thanks

 

1. The 12 months is based on acquisition date of the deceased.
2. Cost base is the cost base of the deceased.
3. what about other cost base expenses?

generally vague wordings in your post so get specific tax advice.

 

Is your first example supposed to be acquired pre sept 1985?

Put in the specific situation without your own interpretation.

there are lots of things you havent asked. Like using the deceased estate’s tax threshold.

 

Cost base expenses have not been included as I am
unclear how that works .which is why I posted.
I know the calc is wrong . i just dont know wat else is needed.

assume depreciation of $20000.
Is that what you mean by cost base?
Thanks for the quick reply Terry

 

For shares and property purchased after 1986

 

Trainnee, deceased estates tax threshold is irrelevent

 

Depreciation of building works reduces the costbase - resulting in higher CGT, with plant and equipment there might be a balancing adjustment needed.

 

I think I have got it. Only use building works depreciation.

In this hypothetical Scenario a cost base of $100,000 is reduced by $ 20,000 of depreciation to

have a new cost base upon sale of $80,000

so, $200,000-$80000 = $120000 CGT calculation

$120,000 x.5=$60,000
$60,000 is added to the personal income for calculation of income tax .

"With plant and equipment there might be a balancing adjustment needed."
Terry Can you give an example pleaseof the of the type of adjustment.I dont really follow

 

Here is an example from the ATO

Example: Working out an assessable balancing adjustment amount, ignoring any GST impact

Bridget purchased a cabinet that she held for two years and used wholly for a taxable purpose. She then sold the cabinet for $1,300. Its adjustable value at the time was $1,200.

As the termination value of $1,300 is greater than the adjustable value of the cabinet at the time of its sale, the difference of $100 is included in Bridget’s assessable income as an assessable balancing adjustment amount.

End of example


Example: Working out a deductible balancing adjustment amount, ignoring any GST impact

If Bridget sold the cabinet for $1,000, the termination value would be less than the adjustable value of the cabinet at the time of its sale ($1,200). The difference of $200 is a deductible balancing adjustment amount.