Tax with Max: Capital gains tax on inherited property

Capital gains tax, deeming rates, the SAPTO and LITO, and more.

Summary: What are the capital gains tax consequences when a property is inherited and it is then rented out? Under the law, if the property was purchased by the deceased before September 1985, the property is deemed to be an investment asset from the time it was inherited. Tax would be payable on the difference in price between when the property was inherited and when it was sold.

Key take-out: If the inherited property was used as a principal place of residence, no tax would be payable.

Key beneficiaries: SMSF trustees and superannuation accountholders. Category: Superannuation.

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