Author: AriATO(Community Support)Community Support 11 Sept 2023
Hi @Olive21
The difference for the CGT calculation for non-residents is they'll be taxed at foreign resident rates and they're not entitled to the main residence exemption. That's if they make a capital gain when or if they sell the property. We currently have some info about inheriting property and you can answer a series of questions to see if the property is exempt from tax. If you're a tax resident yourself and that's your main residence, CGT may not apply to the period you owned it.
The executor or legal personal representative will need to notify us they're looking after your tax affairs. They need to have the right documents to support this. This might be where the complications come in perhaps? We have info about LPR's and their responsibilities on our website.
Thank you very much for your reply, AriAto. I can see that my son won't be entitled to the main residence exemption due to the number of years (more than 6) of him being a non-resident. What I couldn't find on the ATO w/site was the definition of the base cost that is needed to calculate CGT applicable to non-residents: Is it a) the cost of the house that was paid many years ago? Or is it b) the cost of the house on the day my son inherits it? I'd be grateful if you could point me to a link to that information. Many thanks.
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