What's the cost base for CGT on an inherited overseas investment property?

 Author: YellowPotato(Taxicorn)Taxicorn

10 Apr 2026

Best to see a tax agent or ask ATO's technical advice

1. Likely market value on date of death. The asset is unlikely to be taxable Australian property and doesn't sound likely the deceased was ever Australian tax resident
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/how-changing-residency-affects-cgt#ato-BecominganAustralianresident
   2. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/cost-base-of-inherited-assets
2. This is a weird one, the starting date for CGT discount can be different to the date you use for acquisition for cost base (for your CGT calculation). Then you have to apportion for foreign tax residents don't get CGT discount after 8 May 2012
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/cgt-discount-for-foreign-residents

"For the purposes of qualifying for the CGT discount, you can treat an inherited asset as though you have owned it since:

• the deceased acquired the asset, if they acquired it on or after 20 September 1985
• the deceased died, if they acquired the asset before 20 September 1985."

https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/how-cgt-applies-to-inherited-assets

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