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  • Inherited dwellings

    If you inherit a dwelling and later sell or otherwise dispose of it, you may be exempt from capital gains tax (CGT), depending on:

    • when the deceased acquired the property
    • when they died
    • whether the property has been used to produce income (such as rent)
    • whether the deceased was an Australian resident at the time of death
    • whether you were an Australian resident when you sold or disposed of it.

    If you're not exempt, or only partly exempt, you need to know the cost base of the dwelling to work out your capital gain. The cost base may be the value of the dwelling when the deceased acquired it or the value when they died, depending on the circumstances above.

    The same exemptions apply if a CGT event happens to a deceased estate of which you're the trustee.

    These rules don't apply to land or a structure you sell separately from the dwelling – they are subject to CGT.

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    Last modified: 01 Jul 2020QC 52246