AVOID TAX IF YOU INHERIT A HOME

The good news is that if you receive an inheritance you won’t have to pay tax as we have no estate taxes in Australia. If you inherit the family home, though, you need to make sure you take the necessary steps to avoid being stung with capital gains tax if you sell it. This can be avoided if the inherited home is sold within two years of the death. Alternatively, if you move into it as soon as practicable and make it your family home you will also avoid any capital gains tax liability. Should you not move in and also hold it longer than the allowed two years, you usually will be hit by capital gains tax on any pro rata gain since you inherited the property. You can find more information at ato.gov.au.