Gifted Property

If property was gifted to me (not from a will), and i used it as a PPOR, would i have to pay CGT tax when i sell in the future?
 
CGT is not your problem, it will be the stamp duty if the property goes into your name.
This should be charged on its current valuation not at $0 as it would be gifted to you.
 
It will depend on the usage of the house before it was gifted to you. If it was an IP then you will be responsible for the relevant CGT. Same if it was a holiday house or second dwelling. If it has only even been someone's PPOR then it should be CGT free.

Best to get professional advice.
Marg
 
I don't think the fact that it was a gift will make any difference to whether you will pay CGT. It will depend on whether it is your main residence or not.
 
It will depend on the usage of the house before it was gifted to you. If it was an IP then you will be responsible for the relevant CGT. Same if it was a holiday house or second dwelling. If it has only even been someone's PPOR then it should be CGT free.

Best to get professional advice.
Marg

Agree and to add- Get a valuation now. If it was a PPOR you won't pay CGT but will from now if it is to become an IP for you. If it was an IP you will be charged the CGT until now but not after the valuation if it is to be your PPOR.
So you need the valuation for tax purposes.
 
hi

I am not a tax expert, but I cannot see how this could be the case.

The recipient of a gift paying tax. Surely it is the disposer of the asset that it hit with CGT. Deceased estates excepted.

Can anyone back up this claim?
 
hi

I am not a tax expert, but I cannot see how this could be the case.

The recipient of a gift paying tax. Surely it is the disposer of the asset that it hit with CGT. Deceased estates excepted.

Can anyone back up this claim?

Yes, sorry. I was thinking deceased estate. The gifter would pay the tax. I'm not sure how that would work if it was given away. Would they still have to pay on the market value? Otherwise people could just give it to a child etc to avoid the tax.
 
hi

I am not a tax expert, but I cannot see how this could be the case.

The recipient of a gift paying tax. Surely it is the disposer of the asset that it hit with CGT.
Absolutely. CGT is only an issue for the disposer. It doesn't become an issue for navjit6 until such time as he disposes of the property, in the future. For navjit6, the prior use of the property - PPOR or IP - is completely irrelevant; it's only how navjit6 uses it that's relevant to navjit6's CGT assessment.

If navjit6 uses it entirely as a PPOR, no CGT is payable. If it's ever an IP, CGT will be assessed.
 
Yes, sorry. I was thinking deceased estate. The gifter would pay the tax. I'm not sure how that would work if it was given away. Would they still have to pay on the market value? Otherwise people could just give it to a child etc to avoid the tax.

Hi travelbug

For CGT purposes the disposal of the property would be deemed to have occured at market value under s 116-30 ITAA 1997.
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s116.30.html

Stamp duty would be charged at market rates too.
 
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