Dear learned ones.
I will be booking into see a tax specialist with my my mum but would like to float the question first with the Somersoft community. Love this site!
Mum purchased the family home for $55,000 on 1 November 1985 apparently just 2 months after CGT was introduced on 1 September 1985
Mum lived in this house through to June 2003 when she moved to her new main residence and has been renting out the initial property since. (Intermittently) Family home would have been about $220,000 at this time.
Since 2003 my brother and I have been paying the mortgage on the family home with mum receiving the rent for her new home. The deal being that after 10 years we would transfer the house into our name. ( Great mum!)
We are now looking to make this transfer and the bank has valued the home at $300,000 and $80,000 is still oweing on the house. We are aware of the requirement to pay the stamp duty on this transfer.
Mum is on minimum income working and no pension. Is 63 though and hoping to apply for a pension in a couple of years.
Question. Approx what CGT would mum be required to pay for the family home, when we transfer this.
Any advice for me and my brother?
Thank you in advance
PL
I will be booking into see a tax specialist with my my mum but would like to float the question first with the Somersoft community. Love this site!
Mum purchased the family home for $55,000 on 1 November 1985 apparently just 2 months after CGT was introduced on 1 September 1985
Mum lived in this house through to June 2003 when she moved to her new main residence and has been renting out the initial property since. (Intermittently) Family home would have been about $220,000 at this time.
Since 2003 my brother and I have been paying the mortgage on the family home with mum receiving the rent for her new home. The deal being that after 10 years we would transfer the house into our name. ( Great mum!)
We are now looking to make this transfer and the bank has valued the home at $300,000 and $80,000 is still oweing on the house. We are aware of the requirement to pay the stamp duty on this transfer.
Mum is on minimum income working and no pension. Is 63 though and hoping to apply for a pension in a couple of years.
Question. Approx what CGT would mum be required to pay for the family home, when we transfer this.
Any advice for me and my brother?
Thank you in advance
PL