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A couple questions about what happens if you inherit real property overseas - say a house that your grandmother used as a main residence.
1. Can you treat it as your main residence? These answers seem to suggest so:
2. If you treat it as your main residence, do you need to declare the foreign asset/amount at item 20? And can you simply declare it through the online tax return service?
I ask specifically about the online service because I tried it, and there doesn’t appear to be a place to enter the value, even though the online guide states that you should enter a value at item 20. I don’t own the property yet, but thought I’d test it out, and when I selected the “yes” box to owning foreign assets that was the end of it - nothing came up asking you to enter a value anywhere.
Thank you for that link and extra information about the 2 year rule for inherited property and CGT. Very helpful!
No, I don't own any other property. Which is why I figured I could claim the overseas one as a principal residence.
Follow up question. If - instead of selling it - I move overseas to live in the property (as a principal residence) and then return to Australia, would I be able to continue claiming it as a principal residence? Again, the answers in the links I shared previously indicate this to be the case (that you can claim foreign property as your principal residence as long as it is the one property you are claiming as a principal residence).
You can continue to treat it as your Principal Place of Residence and be CGT as long as you don't own any other property, then you can choose which one and then only pay CGT on the lower value one for the time it wasn't your Principal Place of Residence.
You have to take steps to prove it is your Principal Place of Residence