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_Ben123(Newbie)Newbie
29 Aug 2021

Hi,

Woudl be great to get your help with this question if possible.

Husband and wife have owned an investment property since 1984 (ie pre 1985 and therefore not subject to CGT). They are 50/50 joint tenants.

Wife passed away in 2019. Husband now owns 100% of the property. If husband sells wife's 50% to a third party, is the cost base property value at at 2019 x 50% ownership interest? Would that leave husband with his 50% which remains a pre CGT asset so that when he eventually comes to sell that 50% the gain is not taxable?

Thank you

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971 views
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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Aug 2021

Hi @Ben123

Because it's a joint tenants arrangement, the normal inherited property CGT rules apply.

If half the property is sold within two years of the wife's passing, the wife's half will be exempt from CGT. If only half the property is disposed of to a joint tenant, the husband can elect which "parcel" of the property is being disposed of.

You can read about inherited property and CGT, and joint tenants on our website.

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Aug 2021

Hi @Ben123

Because it's a joint tenants arrangement, the normal inherited property CGT rules apply.

If half the property is sold within two years of the wife's passing, the wife's half will be exempt from CGT. If only half the property is disposed of to a joint tenant, the husband can elect which "parcel" of the property is being disposed of.

You can read about inherited property and CGT, and joint tenants on our website.

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CGT treatment of investment property on death of joint tenant | ATO Community