What do if inheriting property

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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.

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