All Topics / Help Needed! / Inheritance and Capital Gains Tax

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  • Profile photo of kennykennykennykennykennykenny
    Join Date: 2012
    Post Count: 23

    Just a question which I hope is simple enough for someone on this forum to answer.

    I have read the ATO website regarding inheriting property and CGT, and based on my understanding and my situation, if my parents pass away and leave their property to me, I can avoid CGT if I sell it within two years.

    Now, what if I subdivided and/or developed a few townhouses on the land? If I sell the subdivided lots or any townhouses within the two-year period, is CGT still not applicable? And what about after the two-year period?

    Thanks guys and have a great weekend wherever you are.

    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    Hi Kenny

    There are no death duties in Australia. However, tax may be payable on certain income or capital transactions that occur as a consequence of a person's death.

    This is a fairly complex area of Tax planning so rather than post a snap shot on a public forum i would strongly suggest you obtain Professional advice from a Tax Lawyer.


    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    Depends on a few things – their PPOR or investment Pre/Post CGT etc

    You will generally inherit the cost base as of the date of their death.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

    Profile photo of kennykennykennykennykennykenny
    Join Date: 2012
    Post Count: 23

    Thanks Richard and Terry.

    Profile photo of thecrestthecrest
    Join Date: 2004
    Post Count: 992

    Hi Kenny.

    The miserable duty of grieving executor can become a nightmare if family disagree.

    I experienced it, and so immediately gladly employed The Public Trustee to do the duty.

    They were just great, kept me fully informed start to finish, very affordable, a plug well deserved.

    And I figured that if anyone wanted to oppose them, well, good luck.




    thecrest | Tony Neale - Statewide Motel Brokers
    Email Me | Phone Me

    selling motels in NSW

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