I have inherited the main residence of my father who lived overseas, so he is a non-Australian while I am an Australian resident. He acquired the property prior to 1985. How is the date of acquisition defined in this case for the purpose of cost base calculation for CGT? I understand normally it is the time of death. Does this also apply here or not because he is a non-Australian?
Hi @easygoes31,
Sorry to hear of your father's passing. In relation to his property we have a series of questions you can go through under Inherited dwellings. This will advise you on whether you're liable for CGT.
There's also information under foreign residents and inherited dwellings, but this shouldn't impact you because the property was pre CGT.
He acquired the property prior to 1985.
How is the date of acquisition defined in this case for the purpose of cost base calculation for CGT?
Market value at date of death.
Thanks so much, Bruce! I am so glad to hear that.
-So for that rule it does not matter that he was a foreigner living overseas, the pre-CGT rule date of acquisition = market value at death does apply?
-However the rule that if I sell the property within two years of time of death I dont have to pay CGT, does NOT apply because the deceased is a foreigner?
-Does the rule apply, if I hold the property for at least a year, the CGT will be reduced by 50%?
-For these various rules, does it matter whether the property of a deceased foreigner is located in Australia or overseas?
Thank you again - I have been spending nights reading up on this, and so grateful to get some help. Kind regards, Isabelle
Hi @easygoes31,
Sorry to hear of your father's passing. In relation to his property we have a series of questions you can go through under Inherited dwellings. This will advise you on whether you're liable for CGT.
There's also information under foreign residents and inherited dwellings, but this shouldn't impact you because the property was pre CGT.
Many thanks, Jodie! Much appreciate the kind words and sending me the links. I had read through these but feel I still need some clarity on the questions above, to make sure I have really understood what I was reading and interpreted it correctly. Kind regards, Isabelle
For instance if I just go through the series of questions:
-deceased acquire the property before 20 September 1985
-I inherited the property after 20 August 1996?
-Just before the deceased died, the property was their main residence and not used to produce income
-Did you dispose of the property within 2 years? Lets say my intention was yes,
I come out at: property is fully exempt
But to my understanding that is not the case if the deceased was a foreigner, so I dont think I can actually use the questions, or do I misunderstand that?
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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