(1) This section sets out what happens if a * CGT asset:
(a) is a demutualisation asset (see section 316 - 110); and
(b) forms part of the estate of an individual who is an entity described in subsection 316 - 115(1) and has died; and
(c) was not owned by the individual just before dying; and
(d) * passes to a beneficiary in the individual's estate because the asset is transferred to the beneficiary by the individual's * legal personal representative.
Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying.
Consequence for legal personal representative
(2) Disregard a * capital gain or * capital loss the * legal personal representative makes because the asset * passes to the beneficiary.
Consequence for beneficiary
(3) The * cost base and * reduced cost base of the asset in the hands of the * legal personal representative just before the asset * passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary.
(4) The beneficiary is taken to have * acquired the asset when the * legal personal representative acquired it.