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Re: Inheritance Money from overseas

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In 2018 I inherited an amount of money which was denominated in USD from my late parent overseas.  

This amount of money had been kept in overseas and remained idle until late 2019 when I converted them into AUD and transfer to Australia.

Is there any tax implication regarding the change of AUD foreign exchange rate during this period?

 

Thankyou for your advise.

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Hi @Rockhg 

 

In Australia a capital sum of money received from an inheritance is not assessable income. However, any income earned from the inheritance such as interest from the investment of an inheritance, is assessable such as interest earnt on a lump sum. If your an Australian resident for tax purposes then that would be included in you tax return annually.

 

 

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Hi @Rockhg 

 

In Australia a capital sum of money received from an inheritance is not assessable income. However, any income earned from the inheritance such as interest from the investment of an inheritance, is assessable such as interest earnt on a lump sum. If your an Australian resident for tax purposes then that would be included in you tax return annually.

 

 

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Thanks for your advise on interest income.

In my situation, I inherited the money in USD from my late parent to me in early Jan 2018.  At that time the AUDUSD FX rate was 0.8.  The money was remained in USD until Dec 2019.

In Dec 2019 I converted these money from USD into AUD at the AUDUSD FX rate at 0.7.

Will such change in FX rate between the time I inherited the money and the time I converted the money into AUD result in capital gain tax?

Thanks again for your help.

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Hi @Rockhg,

 

Thank you for your reply. If you have received foreign income and you are an Australian resident for tax purposes, you will need to include it on your individual tax return. The conversion rate will be relevant when you transfer it across. You will need to include the interest that has accrued since you first inherited it. It will not be looked at as a capital gain but the interest is assessable.

 

Hope this helps.

 

Reagrds,

Jodie2.