cgt cost base for inherited property non main residence

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 · Accepted Answer

AriATO · Answer

Really sorry for your loss. The cost base of the 2nd property depends when your dad purchased it. Do you know if it was before or after 20 September 1985? The first part of the cost base could be the market value on the day your dad passed away or your dads cost base on that day. We have some info about the cost base for inherited assets (https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Cost-base-of-inherited-assets/) on our website. The capital gain isn't reduced by the mortgage Im afraid. You'll work out your cost base and take it away from the proceeds. You can work out if any part the property is exempt (https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Inherited-property-and-CGT/) from CGT by answering a series of questions. CGT is tricky, so I recommend looking through the links I've given. If you have follow up questions come back and let us know.

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