Stephen Brennan
Registered User
- Messages
- 15
No. If you re-read the facts, you’ll see the key point around the aunt’s wishes. The Estate sold the property and the beneficiaries got the proceeds.Is this not 2 separate tax events.
CAT on the 200K in the valuation year (less B threshold) and has to be paid in a tax return by a certain date in that year (something special about November being a cut off for the next year)
Then CGT on the gain on actual sale. In this case 3 years later.
If it's only payable on sale, in the 3rd year, than a low valuation is beneficial as you wouldn't have to get the money to pay CAT in year 1.
You mean this:No. If you re-read the facts, you’ll see the key point around the aunt’s wishes. The Estate sold the property and the beneficiaries got the proceeds.
Yes, it’s because the ‘valuation date’ is when they got the cash.You mean this:
sell my property ............... to divide the net proceeds thereof after legal and estate agents fees
It's because they do not inherit on death, but on sale (after costs) . Whereas if they'd inherited directly it would be as I said?
So you can avoid tax for a long time. In this case 3 years. As an executor I didn't have this issue on my parents estate as we were way below the thresholds, plus property didn't increase when the sale took some years (family issues and agreed delay).Yes, it’s because the ‘valuation date’ is when they got the cash.
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