When our parents died we have , last year, inherited a small farm. They owned for a very long time but because of health were in Aged care and the land but not house was leased. I was told because its a business not just a home we will need to pay capital gains when we sell it. Is that just from date of death. Is it the whole land. Is there any exemptions because they owned fir a long time. Does it make any difference to when we sell it.
They bought it over 40 years ago
There is also another part to it. We already own a little of it from 6 years ago when the first one died but we couldn't sell then because it was leased as one. Can you get an exeption because of this.
If the deceased acquired the property before 20 September 1985 then the cost base for any CGT is market value at date of death.
If after that date then cost base (apart from dwelling and land up to 2ha) is deceased's cost base. (i.e date it was acquired). See below
Cost base of inherited assets | Australian Taxation Office
Dwelling and land up to 2ha is date of death of the deceased.
The dwelling plus land up to 2 ha may be exempt from CGT if sold within 2 years. See this link below.
Inherited property and CGT | Australian Taxation Office
The portion you inherited 6 years ago is treated the same.
A further consideration are the small business CGT concessions. See below
Death and small business CGT concessions | Australian Taxation Office
Does it make any difference when we sell it? .
Yes. Sell within 2 years to gain main residence exemption (except for your portion - unless property is your main residence) or small business CGT concessions (if eligible) if a post CGT asset.
Sorry I forgot to mention. While most was purchased over 40 years ago the smaller bit we inherited 6 years ago ( while being now treated as one farm) was purchased after 1985 but we couldn't sell 6 years ago as leased as one as it still is.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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