Section 118 – 195 of Income Tax Assessment Act 1997 states that a beneficiary may claim a full main residence exemption (CGT Free) of the deceased dwelling where certain requirements are satisfied.

If the deceased purchased the dwelling pre CGT and the following is satisfied:
1.    The dwelling is sold within two years of the date of death; or
2.    The dwelling was the main residence of one or more ‘specified individuals’ for the entire period from the date of death until the settlement date when the property is eventually sold.

Specified individual’s requirement:
1.    Deceased’s spouse;
2.    Individual who have the right to occupy the dwelling under the deceased’s will; or
3.    If the CGT event was effected by the beneficiary who inherited the property.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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