Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 128.50

Joint tenants

  (1)   This section has rules that are relevant if a * CGT asset is owned by joint tenants and one of them dies.

  (2)   The survivor is taken to have * acquired (on the day the individual died) the individual's interest in the asset. If there are 2 or more survivors, they are taken to have acquired that interest in equal shares.

Note:   Joint tenants are treated as owning a CGT asset in equal shares: see section   108 - 7.

  (3)   If the individual who died * acquired his or her interest in the asset on or after 20   September 1985, the first element of the * cost base of the interest each survivor is taken to have acquired is:

Start formula start fraction Cost base of the interest of the individual who died (worked out on the day the individual died) over Number of survivors end fraction end formula

    The first element of the * reduced cost base of the interest each survivor is taken to have * acquired is worked out similarly.

Example:   In 1999   2 individuals buy land for $50,000 as joint tenants. Each one is taken to have a 50% interest in it. On 1   May 2001 one of them dies.

  The survivor is taken to have acquired the interest of the individual who died on 1   May 2001. If the cost base of that interest on that day is $27,000, the survivor is taken to have acquired that interest for that amount.

  (4)   If the individual who died * acquired his or her interest in the asset before 20   September 1985, the first element of the * cost base and * reduced cost base of the interest each survivor is taken to have acquired is:

Start formula start fraction *Market value of the interest of the individual who died (worked out on the day the individual died) over Number of survivors end fraction end formula

Note:   There is a special indexation rule for surviving joint tenants: see section   114 - 10.

Table of Subdivisions

  Guide to Division   130

130 - A   Bonus shares and units

130 - B   Rights

130 - C   Convertible interests

130 - D   Employee share schemes

130 - E   Exchangeable interests

130 - F   Exploration investments


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