Introduction to capital gains tax

Keeping records for an inherited main residence

If you inherit a house that was the main residence of the person who left it to you, any capital gain on its subsequent disposal may be exempt. However, until this is known, you should keep records of relevant costs incurred by you and the previous owner, or their trustee or executor.

You will not need to keep records of the previous owner's costs if:

• you inherited the house after 20 August 1996
• the house was their main residence just before they died, and
• they were not using the house to produce income at the time of their death.

In these circumstances, you will be taken to have acquired the house at its market value at the date of death. If the executor or trustee has a valuation of the asset, get a copy of that valuation report. Otherwise, you will need to get your own valuation.

Capital gains tax - home

Sections within Your home and other real estate

• Timing of a real estate CGT event
• Selling your home
• Dwellings, adjacent land and associated structures
• Keeping records of costs associated with your home
• Keeping records for an inherited main residence
• Selling your rental property