What do if inheriting property

Inherited land generally is disregarded in terms of Capital Gains/Losses when it is passed;

  1. To the deceased person’s executor or other legal personal representative
  2. To the deceased person’s beneficiary –- such as next of kin or a person named in the will
  3. From the deceased person’s legal personal representative to a beneficiary.

These exceptions don’t apply if the property is passed from the deceased to a tax-advantaged entity or to a foreign based entity. A charity is included as a tax-advantaged entity.

If you inherit property after the CGT started on 20 September 1985 and sell the aforementioned property/properties then CGT will likely apply.

Similarly, capital gains tax may apply if the deceased person’s legal personal representative sells a property as part of winding up their estate.

Nilesh Vasoya

Nilesh Vasoya

Nilesh Vasoya is a CPA and experienced business advisor with 15+ years’ experience in accounting and tax, and certifications from NTAA, ICAI (India). He is also a Registered Tax and ASIC Agent. Nilesh specialises in financial reports, cash flow, taxation advice, internal audit, account reconciliation, and advice for small businesses on maximising XERO, MYOB, and QUICKBOOKS. He is experienced in developing strategies for growth within small-medium scale companies.

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