Inheriting a dwelling

Introduction

If you inherit a deceased person's dwelling, you may be exempt or partially exempt when a capital gains tax (CGT) event happens to it (for example, you sell it). The same exemptions apply if a CGT event happens to a deceased estate of which you are the trustee.

The degree to which CGT applies depends on:

• when the deceased person acquired the property
• when they died
• whether the property has been used for income-producing purposes.

These rules do not apply to land or a structure you sell separately from the dwelling - they are subject to CGT. See Subdividing and amalgamating land for more information.