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Inherited my parents house a while back.
Now want to sell it to my daughter. Makes it legal and no siblings squabbling...:wink:
Been looking at the ATO website, but it is confusing re calculating CGT.
Would I be better off finding a "broker", or sell through a real estate agent.
I hate the idea of paying an agent commission on top of CGT.
Anyone have advice, guidance or know someone.....
Thanks in advance
Lyle
You don’t need a broker or a realestate agent what you need is some good financial planning advice from an accountant.
CGT is not straight forward and factors including time you have owned it, CPI etc etc effect the calculation. You really should seek professional advice or you might find yourself paying overs unnecessarily
:iagree: What Beardy said.
We`ve been going through a similar thing. My wife and her sister inherited their parents place 10 years ago, they have been renting it out during that period. The sister decided to buy my wife`s share, we did all the conveyancing ourselves, the state gov finance dept were really helpful as the buyer had to pay duty on the transaction, Landgate (titles dept) were really helpful as well , saved a lot of fees going through an Agent and settlement firm.We have to pay CGT and you`re right it`s a bit daunting , depends on when their parents bought the property , how long you have had the possesion , what the value was when the property became a part of the estate etc ,etc ..We`ll be looking to get as much info as we can ,from the ATO and elsewhere, basically I think the capital gain is from when the parent died to when you sell it, and then it`s only 50% of that capital gain that is taxed and the capital gain goes on to your taxible income for that year.I THINK:o
My Brother in Law did exactly this for the same reasons with no broker or real estate agent, all they did was get several valuations and settled on a price from those. One of the siblings was still unhappy but you can't please everyone.
This may vary depending on which state your in?
A mates mother died and he said he had to sell it within 12 months of her death to avoid any tax on the sale.
H.
i'll echo clear out.
pretty sure you have 12 months to sell an inherited property to avoid capital gains tax.... this may depend on what state you're in. talk to a conveyancer (you'll need one for the sale contract anyway) they will advise you on how to proceed rather then living off the hopes and dreams of randoms on the internet
As said above do get professional help from someone working on your side, solicitor, accountant etc.
My understanding:
If all parties agree on price there may be no need for a valuation.
If you have held the asset for enough time CGT is on half the profit, which in your case is the difference in market value when you inherited to now.
Personally I would seek recommendations for a good accountant before talking to the tax department. That would be my first port of call, or else a recommended lawyer with solid experience in this area.
You absolutely do not need a real estate agent involved. You may need a proper valuation but cross that bridge after you see an accountant/lawyer.
Get quotes for everything before you start. Many years ago I engaged a lawyer for conveyancing at a fixed price. I pulled out and the vile @#$% sent me an enormous bill, twice what the conveyancing would have cost. His claim was that since the transaction did not proceed the work he'd done was at his "normal" charge rate. Lawyers have earned the reputation they have. Be careful.
This from the ATO on inherited property and capital gains tax will probably answer some of your questions.