Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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:
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:
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
Guide to Division 130