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Holiday House

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Mark | 03 Jul 2013, 01:52 PM Agree 0
Holiday House purchased in 1975 in 3 names
In 1994 person A passes away and their share is transferred to the Person B & C.
In 1998 person C buys out person B for $180K.
In 2012 Person C passes away and property left to spouse in will.
Estimated value in 2012 $2.2M.
Can anyone advise what / if any CGT is payable.
Any assistance much appreciated
  • Eos Property | 04 Jul 2013, 10:39 AM Agree 0
    Not an accountant.

    Given person C's original 1/3 share was purchased pre CGT (1985) this portion may be tax free.
    Person B's 1/3 share bought in 1998 will see CGT payable from 1998. Any documents and valuations you have will assist.
    CGT will also be payable on the original Person A share bought in 1994.

    The original structure means CGT will be payable at differing rates and in once case (the original share) not payable at all.

    Given the estimated high net value now I suggest speaking to an accountant before any decisions to sell are made. If the accountant is any good they should be able to suggest ways of legally minimising CGT.
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