| Capital gains tax is a complicated area of the Taxation | | | | asset at the time of acquisition. You will need to get a |
| Law it needs to be applied carefully to identify the | | | | valuation of the asset in order to accurately value it at |
| correct result when making a determination about | | | | the time of death. |
| whether capital gains tax applies to a particular | | | | If, however, it was not a pre-CGT asset for the |
| transaction or not. Inheritance is one of the most | | | | person who dies, you may need details of all relevant |
| complicated areas of capital gains tax. You need to | | | | costs that they incurred as well as those incurred by |
| keep special records in relation to the acquisition of | | | | the trustee, who should be able to give you the |
| capital gains tax asset through the inheritance except | | | | appropriate information related to this. Importantly, if |
| where it is a pre-CGT asset which you acquired | | | | you inherited after 21 August 1996 a house that was |
| before 20 September 1985. | | | | the main residence of the person that you inherited it |
| In this case, you need to know if the person you | | | | from, you can claim a full CGT exemption from the |
| inherited it from acquired the asset before 20 | | | | asset as long as you have an appropriate valuation. |
| September 1985. You also to collect information about | | | | So as you can see, if you are inheriting something |
| the asset value of the property on the day that they | | | | from someone CGT can be a very serious concern if |
| died. In many estates matters, there will be a valuation | | | | you want to sell the asset for cash. You should |
| of a property from around the time that the person | | | | definitely seek legal advice about something like this if |
| passed away. This is the amount of the cost of the | | | | you have any concerns about it. |