Inherited property & CGT

Discussion in 'Accounting & Tax' started by qak, 19th Oct, 2019.

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  1. qak

    qak Well-Known Member

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    A different question!

    Mum bought her house pre CGT, lived in it until she went into a nursing home in the 1990s (at which point it was rented for 2 years) then died. Two of her children inherited it, at which point one bought the other out and has lived in it since.

    Does the period it was used to generate income for the mother have any CGT implications for the child if they sell (or more likely, leave it to their own children)?
     
  2. Trainee

    Trainee Well-Known Member

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    After inheritance was there any period when it was rented out? How long before one child started living in it?
     
  3. Terry_w

    Terry_w Well-Known Member Business Member

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  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The child who owns the property holds TWO parcels
    1. The 50% they inherited; and
    2. The 50% they bought incl any extra legals and duty
    Each will have a different costbase and date acquired.

    The sale of this property would have a CGT impact for the owner only for the period after 1 and 2. If they leave it to their kids then they should ensue they hold good CGT records of the dates and costbase information to assist their kids determine their tax liabilities at a future date.
     
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