• Deceased estates and inheritances

    Generally capital gains tax (CGT) doesn't apply when you inherit an asset. However, it may apply when you later sell or otherwise dispose of the asset.

    If you sell an inherited dwelling, there are special rules – for example, the main residence exemption may apply in part or full.

    Unless the asset you inherit is fully exempt, you'll need to know the cost base of the asset to work out your capital gain when you sell it. The cost base may be based on the value of the asset when the deceased acquired it or the value when they died, depending on the circumstances.

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    Last modified: 17 Jul 2017QC 52244