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hi there just needing some sound advice. my mother recently passed away suddenly and has left her house to myself and my siblings will we have to pay capital gains tax on this house if we sell. we both reside in the house at the moment,also will we have to sell with the 2yrs of her death?
Responses
Hi Vanessa,
If they house was your mother’s primary residence and you’ve now moved into it, you can sell without worrying about CGT.
So long as you are now treating you’re mother’s house as your primary residence.
Regards
James
the house sounds like it was your mothers principal residence, so there is no capital gains tax on it for up to 2 years after her death.
If the house passes to you from her estate and it is then YOUR principal residence, then you wont have any capital gains tax either.
SO, no you dont necessarily have to sell your mothers house to avoid CGT.
BUT!!!
talk to a CPA or CA about it. And bring ALL the info you have on the house: eg
when did your mother acquire the house?
what is the market value of the house as at the day she passed away?
has it been used to make rental income along the way?
who is going to receive the property?
what does the will ACTUALLY say about it?
there are a million ways this can turn nasty, so if you have a good solicitor and a good accountant they should both be aware of the potential traps. Dont go cheap and nasty on the advice here.....it is too important to use someone who has no qualifications and experience here. GEt someone you know has the experience and qualifications to provide you sound advice.
good luck
Brendan
