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inherited commercial property

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chezza952 | 02 Oct 2014, 07:34 PM Agree 0
Hi all,
I'm a tad bewildered regarding a tax issue on an inherited commercial property. The property was purchased in 1967 by my parents and grandparents from which the family company was operated from. No rent was ever paid from the company to our parents/grandparents, but the company paid all rates, improvements etc. My brother and myself inherited this property from our mothers estate (2006 but the will was not probated until 2008). We have recently sold the premises as we have expanded to another property owned by the family company. Is there any tax implications?
  • | 29 Oct 2014, 02:23 PM Agree 0
    I believe you are liable for CGT on the disposal of the Commercial property. You will need to check how exactly this gain is calculated, but I think it will generally be the sale price less the market price of the property the day you legally inherited the property
  • | 06 Nov 2014, 10:35 AM Agree 0
    If the property was sold within two years of your mother's passing then there would be no tax consequences. However, as that time frame has been exceeded the capital gain will generally be the sale price minus the market value of the property of the day of your mother's death. It appears you are entitled to the 50% discount on your capital gain as well. There are plenty of other factors that may need to be taken into consideration depending on the property's history (any major renovations, any quantity surveyor reports done, property income and expenditure declared on your tax return etc)
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