How to avoid capital gains tax on inherited property
Have you inherited property? You may have to pay capital gains tax (CGT). Capital Gains Tax is an Australian tax on real estate or shares that may be payable when you sell these assets. The tax is calculated on the difference between the purchase price of the real estate or shares and the price for which you sell the real estate or the shares.
Australian Residents
Generally, when an Australian resident inherits real estate or shares from a deceased Estate they will be exempt from paying any Capital Gains Tax on the sale of the asset, if certain conditions are met.
Non-Australian Residents
When a non-Australian resident inherits real estate or shares from an Australian resident then they may not be able to access the Capital Gains Tax exemptions available to Australian residents. Whether Capital Gains Tax will be payable can often depend on how your loved one has set up your inheritance in their Will. If they were unaware that Capital Gains Tax was payable by foreign residents then you may be subject to a costly tax bill from the Australian Government.
How we can help
Want to learn how to avoid capital gains tax on your inheritance?
You need to seek expert legal advice on whether Capital Gains Tax is payable if you sell the real estate or shares and, if it is payable, whether there are any avenues available to minimise the impact on the value of your inheritance.
Graeme Heckenberg is an expert Wills & Estates lawyer and guides and advises clients on a wide range of Wills and Estate matters including inheriting real estate, shares and other property in Australia. If you are living on the Northern Beaches and surrounding Peninsula and need expert advice call The Northern Beaches Lawyer today for an appointment close to home.
