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Re: Cash gift from proceeds of Australian share account by non resident mum to me for house purchase

Newbie

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Replies 3

Hi

I am looking to buy a house and my mum who lives overseas has an Australian Broker share trading account ( non tax resident status) in Sydney since 2012. She is willing to sell most of her shares ( approx $300,000) and help me put up a bigger deposit on the house.

Can the $300,000 be treated as a cash gift  to me when she transfers the money from her Australian Broker account  to my bank account. I understand cash gifts are not taxable when I receive them. 

She had previously indicated that this was going to be my share of her estate when she passes ie my inheritance.

Thank you 

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Most helpful response

Devotee

Replies 2

The gift will be tax free but she will be paying capital gains tax on the sale of her shares

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Most helpful response

Devotee

Replies 2

The gift will be tax free but she will be paying capital gains tax on the sale of her shares

Newbie

Replies 1

Hi SM2304

Thanks for your reply.

When I mentioned the potential capital gains tax on sale of shares to my parents they seem a little confused. They said that when they made a decision in 2012 to invest in Australian shares there was no CGT on share investments then.

Has there been a change in the tax treatment  since then which they are not aware of ?.

Thank You

 

Devotee

Replies 0

Capital gains tax is nothing new - it has been part of Australian tax system from way earlier than 2012