Moving into an investment property prior to death

An investment property which has always been rented out since Day 1 which has been moved into prior to death is meant to be tax free, meaning no CGT is due when ownership is passed on. How does this exactly work with multiple owners? Let's say Homer, Marge & Bart own an investment property either as JT or TIC in equal shares. 10 years later Homer's not well at all. Homer (or all of them?) moves into the investment property. Home passes away a few days later. Is the investment property 100% CGT free or only Homer's ownership portion of 33.33%?

 

Any transfer on death is not a CGT trigger.

I think you are talking about the cost base being reset to market value.

Where there are separate owners each has their own interest in the property separate to others. If Homer dies only his share of the property passes on to others

 

Yes correct. Thanks Terry

 

I'm a bit confused about how NSW land tax would work with a similar situation as above.

Say that Homer, Marge & Bart own an investment property in NSW with $500k in land value either as JT or TIC in equal shares. Five years later Bart goes out and buys an investment property in NSW with $500k in land value being 100% in Bart's name. How does the land tax threshold work?

Is it for the 1st property 133k of land tax exemption gets allocated per each of the 3 people and for the 2nd property $500k of land tax exemption goes to Bart, meaning that Bart has used up 633k of his land tax exemption?

 

This gets complicated

Joint owners are basically considered one owner and then when one of them buys separately this is assessed plus the share of the joint owner with a formula to prevent double taxation.

I have written a tax tip on this