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e38dan(Newbie)Newbie
31 Aug 2022


Hello,


My long term defacto partner of 25 years passed away. We lived together in a house which was our primary residence when she was alive


The house was in her name


When she passed away she left the house 50% to me and 50% to her children.


I want to continue to live it as my primary residence


Her kids are wanting to sell the house within 2 years so they don't need to pay capital gains.


My question

When its time to sell the house will I have to pay CGT on my 50%?

Will her children have to pay CGT on their 50% or does the property qualify for a full tax exemption as its his primary residence


Are they correct in saying they need to sell it within the 2 years

3,877 views
3 replies
3,877 views
3 replies

Most helpful response

Most helpful reply

JodieR_ATO(Community Support)Community Support
1 Sept 2022

Hi @e38dan,


We're sorry to hear of the passing of your partner. In relation to inheriting a dwelling @Bruce4Tax is correct. The main residence exemption can continue for up to 2yrs if the property is sold before the 2yr period. If the property is held for longer then 2yrs the children would be liable for CGT fo the period above the 2ys for their 50% share. For your 50% share you can continue living their and using it as your main residence. You may have to buy the kids 50% share or come to an agreement if you want to continue living there after the 2yr period.


See -Inherited dwellings and CGT, you can check out the questions via this link.

All replies

Bruce4Tax(Taxicorn)Taxicorn
1 Sept 2022

When its time to sell the house will I have to pay CGT on my 50%?


No - as long as you continue to live in it as your main residence.


Will her children have to pay CGT on their 50% or does the property qualify for a full tax exemption as its his primary residence


Yes - if they are not living in the property as main residence, or unless their half is sold within 2 years.


Are they correct in saying they need to sell it within the 2 years


Yes




e38dan(Newbie)Newbie
1 Sept 2022

Thanks for the reply.


Just to confirm - if they sell the house or the half they own in the house will they have to pay any CGT if they sell within the 2 years?


If we do sell the house within the 2 years I will have to find another house to buy. Will I have to pay any CGT ?


Thanks

Most helpful reply

JodieR_ATO(Community Support)Community Support
1 Sept 2022

Hi @e38dan,


We're sorry to hear of the passing of your partner. In relation to inheriting a dwelling @Bruce4Tax is correct. The main residence exemption can continue for up to 2yrs if the property is sold before the 2yr period. If the property is held for longer then 2yrs the children would be liable for CGT fo the period above the 2ys for their 50% share. For your 50% share you can continue living their and using it as your main residence. You may have to buy the kids 50% share or come to an agreement if you want to continue living there after the 2yr period.


See -Inherited dwellings and CGT, you can check out the questions via this link.

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Partner passed away and left half the house to me + kids Capital Gains Question | ATO Community