My father
passed away 2018 and left his house to my mother, my sister and I equal thirds. My mother lived in the house alone until recently moving into aged care. We have sold the house. Do we have to pay capital gains tax?
Hi @Lyntee,
Whether capital gains tax (CGT) applies depends on how the inherited property was used over time.
On-going use as a main residence is an important factor when working out whether a full or partial CGT exemption applies. Based on what you've shared, it aligns with your situation, because:
As more than 2 years have passed since your father’s death, the automatic 2‑year exemption may not apply. However, an exemption may still be available depending on whether the property continued to be used as a main residence and whether it was used to earn income.
We have a step‑by‑step guide on our inherited property and CGT webpage that walks you through a series of questions to help work out the CGT treatment for inherited property. This should help you apply the rules to your situation.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
291 views
1 replies