Client’s father passed away in 2016. There was a jointly owned property (with siblings) that was not main residence of the deceased. There was no mention of the property in the will. In 2024 his share was transferred to client just before it was sold. Is there CGT payable on the proceeds? If yes, would the cost base be the 2016 market value or 2024 when it was transferred to client?
Best to contact a tax professional or ask ATO private ruling
I think that would be an assessable capital gain/loss
Is there CGT payable on the proceeds?
If yes, would the cost base be the 2016 market value or 2024 when it was transferred to client?
Hi @MegK,
Yes, it does sound like there'll be CGT payable when your client sells their inherited share of the property. The cost base is the deceased father's original cost base at the date of death in 2016, not the market value at death or when the share was transferred in 2024. This applies where the father acquired the property after 20 September 1985 and it passed to a beneficiary under the estate.
Market value at death only applies in limited cases, such as when the property was the deceased's main residence and not used to produce income just before they died. That doesn't appear to apply here, as the property was not the main residence of the deceased.
Your client may be eligible to use the CGT discount if the total ownership period (from when the father acquired the property) exceeds 12 months.
We've got some info on how CGT applies to inherited assets that may help.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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