Inherited Shares Purchase Price

[HappyChappy63]

Hello

I have inherited some shares and in the future may want to sell some.
The CGT is dependent on the original purchase price. How can I determine that purchase price? I have no paperwork to accompany them.
Also, as the shares were split four ways, how to determine which were original shares and which may have come via dividend reinvestment programs
Thanks
Peter

 

[Dona Ferentes]

an accountant can help you.

 

[peter2]

You've got to hope that there's some paperwork in the estate that shows the purchase price. Ask executors to look for it. This is definitely an aspect that needs an expert opinion from a tax accountant. Best to get it sorted before the estate is finalised.

Executors should notify the beneficiaries of the purchase prices when distributing equites from an estate.

 

[Austwide]

Ho do you know you have some, is there a chess statement or something giving the brokers name, or date of purchase?

 

[tech/a]

Inheritance isn’t subject to tax as far as I know,
Any capital gain from the time you have them in your possession will be.

have someone who’s up on tax and inheritance law check it out

 

[Belli]

Get thee to an accountant. Quite a common exercise for Deceased Estates.

It's going to cost though as the respective share registries may (will) charge for doing a search and then there is the accountant's fee on top of that. Pay and be happy. It'll save you a lot of trouble, time and money in the long run.

DRP prices can usually be found on the relevant companies web-sites. Bit of a tedious task as each company, where the information is available, can have it in different formats As examples:

https://www.iag.com.au/shareholder-centre/dividends and

https://www.argoinvestments.com.au/shareholder-centre/share-issues which is in PDF format.

 

[barney]

ATO gives some relevant info

Page not found | Australian Taxation Office

www.ato.gov.au

Interestingly, Capital Gains DOES apply if the shares are transferred to a "tax advantaged" entity such as a Charity

I guess that stops potential subterfuge.

In essence as tech has said, no Capital Gains unless you sell .... and then,

The initial cost base of the shares you have inherited, is their PRICE they were on the day that the person who left them to you died

There are likely variations to the rule by the way the ATO has worded it, so Pro advice definitely a good thing if you are talking a substantial amount.

On the flip side, it was very nice of your Family member/Friend to leave you something so well done to them

 

[frugal.rock]

Hello

I have inherited some shares and in the future may want to sell some.
The CGT is dependent on the original purchase price. How can I determine that purchase price? I have no paperwork to accompany them.
Also, as the shares were split four ways, how to determine which were original shares and which may have come via dividend reinvestment programs
Thanks
Peter

If the broker is known, records could be obtained from the broker on both counts.
If electronic, it could be easy enough.
Just my thoughts.
Cheers.

 

[Smurf1976]

If the broker is known, records could be obtained from the broker on both counts.

If the OP by chance has access to the deceased person's email then they may well already have the required information previously sent since most (all?) brokers sent an automated email for transactions.

 

[Dona Ferentes]

You've got to hope that there's some paperwork in the estate that shows the purchase price. Ask executors to look for it. This is definitely an aspect that needs an expert opinion from a tax accountant. Best to get it sorted before the estate is finalised.

Executors should notify the beneficiaries of the purchase prices when distributing equites from an estate.

Technically it's not a purchase price, but a cost base of the shares at time of the estate being finalised, and allocated to the beneficiary. The executor, if worth his/ her salt, would have provided this and, if a public official or legal firm, have a record of the information.

Any reinvestment of dividends is the current owners responsibility. Keep records. It is possible to reconstruct cost base for each transaction, depending on the company and/or the Chess subregistry. No CGT is due until your holdings are sold. Dividends, however, need to be declared each FY, from the date of transfer to beneficiary. An accountant can help reconstruct the share ownership history and attempt to optimise your situation.

 

[Belli]

As @barney posted the ATO does have some information but it can be tricky, especially if the deceased acquired the asset pre-CGT. Identification of an asset in that category is winning the lottery.

Quite a lot of Estates are pretty straightforward but some are not and beneficiaries can get into a whole world of trouble if they aren't.