• Inheriting a main residence

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    If you inherit a house that was the deceased's main residence, 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, the deceased or their trustee or executor.

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

    • you inherited the house after 20 August 1996
    • the house was the deceased's main residence just before they died, and
    • the house was not being used to produce income at the time of death.

    In those 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.

    Last modified: 04 Mar 2016QC 27527