Inheriting Pre-CGT Property CGT came into force on 20 September 1985 and property owned prior to this date generally remains CGT free until sold. It doesn’t matter whether the property is the main residence or rented out. However when a person that owns pre-CGT property dies the pre CGT property will retain its CGT exempt status if it is sold within 2 years of the death of the deceased. Section 118-195 ITAA97 INCOME TAX ASSESSMENT ACT 1997 - SECT 118.195 Dwelling acquired from a deceased estate Where the property is not sold within 2 years it will then be subject to CGT with the cost base being the valuation as of the date of death. Note that the 2 years is strict and the Commissioner of Taxation does not have the power to extend this.