Comments on: Here is what you need to know about inheriting an investment property

By: BMT Team

BMT Team — Thu, 21 Oct 2021 22:10:53 +0000

Hi Brett,

Thanks for your comment.

If the family home was bought, inherited and sold within the applicable CGT dates and was not used as an investment property at any time before inheriting, it will not be subject to CGT if sold within 2 years of the person’s passing.

We recommend getting in touch with your accountant to discuss your individual scenario.

Thanks,
The BMT Team

By: BMT Team

BMT Team — Thu, 21 Oct 2021 22:08:15 +0000

Hi Leonie,

Thanks for your comment.

Given that the property was purchased after CGT was introduced it will be applied.

However, an accountant may apportion the CGT rate based on the period the property was rented (verse the time it was the family home). The owner may be eligible for the 50 per cent CGT exemption which will further decrease any CGT liability.

We recommend getting in touch with your accountant to discuss your individual scenario.

Thanks,
The BMT Team

By: Brett Appleton

Brett Appleton — Tue, 19 Oct 2021 22:10:50 +0000

Hi there, what if you inherit the family home. I assume rules are different? ie. If you rent out or sell the property?

By: Leonie Sweeny

Leonie Sweeny — Tue, 19 Oct 2021 04:20:01 +0000

How much CGT would be payable on a family home that has been rented out for 7 years the first 4 years at $340 and the last 3 years at $380 the home was purchased in 1990 then rented from 2014 till 2021 the purchase price was $91k the sale price is 518k