Commonwealth Consolidated Acts

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Asset passing to tax - advantaged entity: CGT event K3

  (1)   CGT event K3 happens if you die and a * CGT asset you owned just before dying * passes to a beneficiary in your estate who (when the asset passes):

  (a)   is an * exempt entity; or

  (b)   is the trustee of a * complying superannuation entity; or

  (c)   is a foreign resident.

  (2)   If the asset passes to a beneficiary who is a foreign resident, CGT event K3 happens only if:

  (a)   you were an Australian resident just before dying; and

  (b)   the asset (in the hands of the beneficiary) is not * taxable Australian property.

  (3)   The time of the event is just before you die.

  (4)   A capital gain is made if the * market value of the asset on the day you died is more than the asset's * cost base. A capital loss is made if that market value is less than the asset's * reduced cost base.

Note:   The trustee of the estate must include in the date of death return any net capital gain for the income year when you died.


  (5)   A * capital gain or * capital loss is disregarded if you * acquired the asset before 20   September 1985.

Note:   There is also an exception for certain philanthropic testamentary gifts: see section   118 - 60.

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