Hi all. My parents both 80 are divorced. One parent now lives in a Property that they purchased in 1990 and tenanted and left vacant till 2019 when they divorced (settlement) and one parent moved into it. Both IP and PPOR have never had a loan against them. The PPOR which was the IP is now to be sold. What CGT implicatioms qouls they have? Any options to mimise? Parent is solely on an Old Age Pension. Thanks.
The implication is the owner will be liable to CGT for sellinga asset that is not 100% exempt. The asset want exempt for a long period. . If they died while living there the CGT would be "forgiven" If the divorce & property settlement has not finalised the tax is a aspect for the solicitors to consider in any settlemen calcualtion. The house is not worth "market value". It is worth market value less the accrued tax.
