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Sale of inherited main residence - deceased estate

Newbie

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Is a capital loss on the sale of an inherited main residence (which was sold after two years) carried forward in the beneficiaries tax return, or ignored?

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Community Moderator

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Hi @LeslieWallis

 

If the beneficiary determines that they are only partly exempt from capital gains tax (CGT), they will need to work out the capital gain or loss. For more information about calculating a partial exemption for an inherited dwelling, have a look at our website.

 

If they calculate that they have incurred a capital loss on the sale of the inherited main residence, they can declare the loss in their tax return and carry it forward to future years. There are no rules that require them to ignore it.

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @LeslieWallis

 

If the beneficiary determines that they are only partly exempt from capital gains tax (CGT), they will need to work out the capital gain or loss. For more information about calculating a partial exemption for an inherited dwelling, have a look at our website.

 

If they calculate that they have incurred a capital loss on the sale of the inherited main residence, they can declare the loss in their tax return and carry it forward to future years. There are no rules that require them to ignore it.