Is money received from a deceased estate taxable ?
- Thread starter hwd007
- Start date
http://www.ato.gov.au/individuals/content.asp?doc=/content/37184.htm
Google is an amazing tool. You should check it out sometime.
Google is an amazing tool. You should check it out sometime.
Thanks. Yes I did b4, but could not identify ATO treatment of money received from a deseased estate. I have since found this and am now trying to make sense of it.
http://www.ato.gov.au/individuals/content.asp?doc=/content/31669.htm&page=43&H43
http://www.ato.gov.au/individuals/content.asp?doc=/content/31669.htm&page=43&H43
From memory, deceased estates are CGT free for two years. But the rules might have changed since then. Who knows with the ATO, buncha slippery so and so's.
A cash bequest should be tax free.
Assets are a different matter, as you will also inherit any CGT liability. For example, if you inherit shares that have been bought after 1987 you will also be liable for the CGT on the gain from their purchase date to the date when you sell (less the 50% discount if applicable).
Marg
Assets are a different matter, as you will also inherit any CGT liability. For example, if you inherit shares that have been bought after 1987 you will also be liable for the CGT on the gain from their purchase date to the date when you sell (less the 50% discount if applicable).
Marg
Generally the two year exemption fron CGT applies to an inherited property that was the main residence of the deceased.
Yeah, that's what I meant. Should've been clearer.
What do you mean by money recieved? If you mean if you were to receive money from the estate then yes that is tax free. If the estate was to earn income (IE. Rent) then that money will be taxable income to the estate.
Generally a cash bequeath will be tax free. If in doubt you should get some direction from the executors and the trustees of the estate as they "should" know which assets of the deceased have been distrubuted and to whom.
