A husband passed away in 1985 and left his wife a house, House 1, to live in. Later, in 1989, the wife sold House 1 to buy a new house, House 2. In 1996, she wanted to move back to Sydney and buy another house, House 3. However, there wasn't enough money, so the executors of the husband's estate let their son A buy a part of House 3. The estate bought the rest, and the wife and son lived there. They signed a legal agreement, called a deed of family arrangement, to document this.

Capital Gains Tax Implications for Married Couple's Residential Properties

Q: A shareholder own shares in a private company. Three-quarters of those shares were issued to the shareholder when the company was formed. The other shares came from the acquisition of the shares of an outgoing shareholder many years later. The shareholder wishes to sell some but not all of their shares. The issue is that disposal of the shares acquired on issue would not have a CGT cost whereas if any part of the disposal was attributed to the later acquired shares, there would be a CGT cost.

Q: I have a farming client who's selling a pre-September 20, 1985 asset, which means they won't pay capital gains tax (CGT) on the sale. I've heard they can roll over the sale proceeds into a superannuation fund. Does the small business 15-year exemption affect the $500,000 retirement limit?