Lodging Tax Returns for Your Deceased Loved One

Lodging Tax Returns for Your Deceased Loved One

In fulfilling the responsibilities of estate administration, the Executor or Administrator, as outlined in Funera Sydney's guide, assumes the crucial task of managing taxes for the deceased estate during its custodial period. This includes the preparation and filing of tax returns for both the deceased individual and the estate for the relevant financial year.
  • Procedure
    1. Notify the Australian Tax Office (ATO)
    2. Compile Inventory of Assets & Liabilities
    3. Determine Tax on Inheritance
    4. Prepare Tax Return
    5. Lodge a Final Estate Tax Return
  • Tax Considerations for Different Assets
    • Income Tax
    • Applicable to earnings from various sources. If the estate generates income during administration, income tax applies.

    • Company Tax
    • If the deceased owned a business passed on to a beneficiary, company tax obligations continue.

    • Capital Gains Tax (CGT)
    • Paid on profit from asset sales. Generally not applicable upon inheritance but may apply upon the asset's sale. Exceptions for sales within two years of death or if inherited by a non-resident.

    • CGT on Real Estate
    • Dependent on whether the property was the deceased's principal residence. Sale during estate administration may not incur CGT.

    • Other Assets and Taxes
    • No tax on inheritance or gifts. Cash inheritance usually avoids capital gains tax but may incur income tax. Consultation advisable for complex assets like shares, cryptocurrency, and personal use assets.

    • Tax on Superannuation
    • Generally not part of the deceased estate. Taxation advice recommended for non-dependent beneficiaries.

Final Steps

In conclusion, the Executor or Administrator must adhere to the ATO's tax return lodgement deadlines (by October 31 of the relevant financial year). If concerns arise about meeting the deadline, contact the ATO for a deferral. For further details on deceased estate tax returns and taxation matters, contact the ATO at 13 28 61 or visit their website.
At Funera Sydney, we understand the intricacies of managing tax affairs in the context of a deceased estate. Our team is here to provide support and guidance throughout the process, ensuring that the financial aspects are handled with care and compliance. For additional assistance, feel free to reach out to Funera Sydney at our dedicated phone numbers: Main Line: (02) 9954 6655 Sydney: (02) 9954 6655 Newcastle: (02) 4955 1110 Wollongong: (02) 4243 8755
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