NSW Estate Capital Gains

[Knightmare]

I understand that capital gains can be applied to estate assets if they are not distributed with two years of death. However, is this based on original purchase price or asset value as at date of death? Thanks

 

[Arche]

Hi Knightmare
The simple answer is " it depends". Capital gains tax comes in to play when there is a CGT event, for example disposal of an asset in some circumstances.
Without knowing what type of asset you are talking about, and when the deceased acquired it, it is impossible to answer your question.
Have a good look at ato.gov.au for more info.

 

[Rob Legat - SBPL]

An accountant might be a better place to direct your enquiries.

 

[Antony M CA]

Hi Knightmare,
It sounds like you're asking about the 2 year main residence exemption. (Simplified) If you inherit a deceased persons main residence, you may have 2 years to dispose of the property without any capital gains tax consequences (depending on circumstances). It only applies to the deceased persons home, not rental properties, not shares, nor any other investments I'm aware of. Also, you may not need to obtain purchase documents or market value if the sale is exempt for CGT.
Your accountant should be able to guide you through this properly.