Sale of gifted property overseas

(Initiate)Initiate

4 Feb 2021

Hi there,

I would like to know if there is any tax to be paid on the sale of a house which I have recieved as a gift from my father.

The ownership was transfered over to my name years ago from my father as a gift, I have not lived in this house, my father was living in it, my primary residence was in Australia. If I sell this house do I have to pay any tax on the price I recieve for it in Australia?

I understand that there is captal gains tax on sold property which is the difference in the purchase and sold price, but since I have not paid any money to acquire this property I have 0 capital gains or losses.

Thank you kindly for any ionformation regarding this matter.

Best regards

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2,719 views

9 replies

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BlakeATO

(Community Support)Community Support

5 Feb 2021

Hi @Laszlo

There will be capital gains tax implications on the sale, as the property was not your main residence.

When you sell the property, your capital gain (or loss) will be the capital proceeds (property sale value) minus your cost base (purchase price, and some other costs).

Where you did not make a payment for the asset, your first element of the cost base, money paid or property given for the CGT asset, is replaced by the market value at the time of acquisition.

You can read about the cost base on our website.

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