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_Lorettaann(I'm new)I'm new
1 Aug 2021

Would appreciate an answer to my query:

my mother owned vacant land at the time of her passing - I together with my three siblings inherited the vacant land as part of her estate which has been sold within the two year limit - my question is whether I will have to pay CGT on my quarter portion of the vacant land at tax time.

my mother purchased the land in 2017 for $143,000 - she passed in late 2019 and the vacant land was sold in May 2021 for $180,000.

Look forward to a response.

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687 views
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Most helpful replyATO Certified Response

_KaraBATO(Community Support)Community Support
ATO Certified Response2 Aug 2021

Hello @Lorettaann,

I'm sorry to hear of your loss.

Yes, you will need to pay a capital gain on your portion of the vacant land.

The two year period is a 'special rule' that applies to inherited dwellings that are fully exempt before you inherit them.

Vacant land could be considered exempt under a main residence exemption when Constructing, renovating or repairing a dwelling on land you already own.

Unless your mother was claiming this main residence exemption for the land the normal CGT rules apply when selling an inherited asset, which means you are required to pay CGT on your portion of the vacant land.

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Most helpful replyATO Certified Response

_KaraBATO(Community Support)Community Support
ATO Certified Response2 Aug 2021

Hello @Lorettaann,

I'm sorry to hear of your loss.

Yes, you will need to pay a capital gain on your portion of the vacant land.

The two year period is a 'special rule' that applies to inherited dwellings that are fully exempt before you inherit them.

Vacant land could be considered exempt under a main residence exemption when Constructing, renovating or repairing a dwelling on land you already own.

Unless your mother was claiming this main residence exemption for the land the normal CGT rules apply when selling an inherited asset, which means you are required to pay CGT on your portion of the vacant land.

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CGT on vacant land that has been inherited | ATO Community