Inheriting an Investment Property

If an investment property is transferred to you in a will that was bought after the 19 September 1985, you will inherit the cost base and there are no tax consequences other than Capital Gains Tax when you sell it.


If you inherit an investment property bought before the 19 September 1985, you will be allocated a cost base equal to the market value of the property at the date of death.  You will pay Capital Gains Tax when the property is sold.

If you inherit a share of an investment property and the other beneficiaries decide they want to sell, you can apply for finance to buy out the other beneficiaries, however if you don’t have a 5% deposit in genuine savings, most banks will decline your loan despite the amount of equity you have in the property.

Some people may not be ready to take on the responsibility of an investment property when it is received and may find that they are unable to qualify for finance.

There are however, specialist lenders in the market that can assist and always seek financial advice specific to your situation, from an accountant who is well versed in property investing.



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Jason Gwerder
Sunday, 15 September 2019

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