Hi. I received a property as an inheritance. What is the time frame after a property has been inherited in which the property can be sold without paying Capital Gains Tax (CGT)?
VIC Property Inheritance - When to Sell Without Capital Gains Tax?
- Thread starter Peter Geeves
- Start date
Hi Peter,
The general rule is, a transfer of property from a deceased person to their personal representative or beneficiary, will not attract CGT. However, if the personal representative or beneficiary later sells the property (at any time, i.e. no time frame for not paying CGT), they will need to pay CGT. The CGT is based on the difference between price at sale and price at acquisition. The price at acquisition for the beneficiary, will be the price of the property at the date of the deceased's death. Note that this rule will not apply to a beneficiary who is an entity or foreign resident, in this case, they will need to pay CGT for the transfer under inheritance.
Take a look at the ATO's Deceased Estate and CGT for more information.
The general rule is, a transfer of property from a deceased person to their personal representative or beneficiary, will not attract CGT. However, if the personal representative or beneficiary later sells the property (at any time, i.e. no time frame for not paying CGT), they will need to pay CGT. The CGT is based on the difference between price at sale and price at acquisition. The price at acquisition for the beneficiary, will be the price of the property at the date of the deceased's death. Note that this rule will not apply to a beneficiary who is an entity or foreign resident, in this case, they will need to pay CGT for the transfer under inheritance.
Take a look at the ATO's Deceased Estate and CGT for more information.
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