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JessB-D(Newbie)Newbie
22 July 2024

Hello, my father passed away in 1983 when I was 1 year old. In his Will, he stated 'Should I own this block (49 acres), I wish to give it to my daughter.' I later found a solicitor letter that stated that the property was in my grandfathers name and he passed it to me in Feb of 1986 but remained as Trustee on the land. My grandfather passed away 2 years ago. How do I work out if I need to pay CGT and how much I owe? I sold the land in January of this year. Thank you

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606 views
1 replies

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Most helpful replyATO Certified Response

AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
ATO Certified Response25 July 2024

Hi @JessB-D,

 

If you inherit a property and later sell or otherwise dispose of it, you may be exempt from capital gains tax (CGT). For more information see Inherited property and CGT and follow the steps to see whether you may be exempt from CGT when disposing of the property.

 

If your property is not or only partially exempt from CGT, to work out your capital gain you need to know its cost base. For more information see Cost base of inherited assets on how to work out the cost of an inherited asset when you calculate CGT.

 

If your property is partially exempt, you need to work out the proportion of your property that is exempt. For more information see Calculating a partial exemption for inherited property.

All replies

Most helpful replyATO Certified Response

AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
ATO Certified Response25 July 2024

Hi @JessB-D,

 

If you inherit a property and later sell or otherwise dispose of it, you may be exempt from capital gains tax (CGT). For more information see Inherited property and CGT and follow the steps to see whether you may be exempt from CGT when disposing of the property.

 

If your property is not or only partially exempt from CGT, to work out your capital gain you need to know its cost base. For more information see Cost base of inherited assets on how to work out the cost of an inherited asset when you calculate CGT.

 

If your property is partially exempt, you need to work out the proportion of your property that is exempt. For more information see Calculating a partial exemption for inherited property.

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How do I work out the CGT for a property that I inherited | ATO Community