The Tax Consequences for the Family Home After Death

For many deceased estates, the major asset is the deceased’s main residence, being a CGT asset with a difference due to the various emotions and memories that may be attached. Determining whether there are any tax consequences for this asset will depend on a number of variables, which this session explores, including:

• Does the history of use of a main residence matter?
• How the CGT main residence rules interact with:
  • section 118-145 ITAA 1997, if main residence use ceases pre death
  • moving into an aged care facility pre death and maintaining home ownership
• the two year rule, including:
  • the relevant dates to use
  • when the period may be extended
• How the CGT cost base rules apply to a main residence, including:
  • the situations where historical ongoing ownership costs may be required
• Why the residency status of the deceased matters
• When the will grants a beneficiary a right to reside
• Applying the rules for a main residence on land in excess of two hectares
• Practical examples of CGT implications based on the various usage of a main residence post death