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Capital gains for non resident

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Newbie

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I'm non resident for tax purposes, and a beneficiary to part of a deceased estate. The home was purchased in 2000. Main residence status of the home is undetermined as yet. Other beneficiaries to the estate are Australian residents.

If the home passes from the deceased estate to the beneficiaries, and is then sold, and each beneficiary is to pay their own CGT, are all beneficiaries entitles to the 50% CGT discount? or only the Australian residents?

 

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ATO Certified

Community Support

Replies 2

Hi @kucab2019

 

Welcome to our Community.

 

@macfanboy has already answered the question but if you would like to read more about this subject, refer to the CGT discount for foreign resident individuals page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

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Taxicorn

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Only Australian Residents for tax purposes would be eligible for the 50% CGT discount.

 

 

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Best answer

ATO Certified

Community Support

Replies 2

Hi @kucab2019

 

Welcome to our Community.

 

@macfanboy has already answered the question but if you would like to read more about this subject, refer to the CGT discount for foreign resident individuals page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

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Initiate

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Hi, just extending from this question, according to the linked ATO site: 

 

You must calculate the CGT discount you can apply to the capital gain you have if you are an Australian resident and, after 8 May 2012, you have:

  • a capital gain from a CGT event
  • a period of foreign or temporary residency.

How does one go about calculating the CGT discount if they have mixed periods of being an Australian resident for tax purposes and not being a resident for tax purposes after 8 May 2012?

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ATO Certified

Community Support

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Hi @alterego,

 

Thanks for your question!

 

In the page link provided above by @ChrisATO, there is a CGT discount worksheet. You will need to use this worksheet in order to work out the CGT discount that you may be entitled to as a part year resident.

 

Hope this helps,

 

Rachael B.