taxs on inheritence

wildroses81
New Member



Joined: 31 Jul 2008
Posts: 8

Posted: Thu Aug 07, 2008 10:35 pm

 

---

Does anyone know about being taxed on an inheritance from Canada in Oz?

---

britzinoz
New Member


For every question there is an answer.

Joined: 20 Aug 2008
Posts: 7
Location: QLD

Posted: Wed Aug 20, 2008 4:32 pm

 

---

The Australian Taxation system taxes Australian RESIDENTS on their worldwide income, of almost any sort, but there are exemptions.

Here is one quote from the ATO website:
"If you inherit a house that was the deceased’s main residence, any capital gain on its subsequent disposal may be exempt. However, until this is known, you should keep records of relevant costs incurred by you, the deceased or their trustee or executor."

I cannot post the link yet, as I am a new member, but do a search on the Australian google for "Records relating to inheritance" and the top result should be the correct ATO web page. (Australian Tax Office)

---

jimflea
Junior Member



Joined: 03 Dec 2007
Posts: 15

Posted: Thu Aug 21, 2008 6:50 am

 

---

This topic got be curious, so I also looked up the same thing - this kinda sums it up on the ATO web site. From my interpretation, if it's only cash that is being transferred to you, and it was already taxed in Canada from the sale of its originating asset (capital gains or any applicable income taxes), then it's not taxable in Australia.

If you receive an asset, then capital gains taxes on you may eventually apply.

If the deceased's assets are put into an ongoing income trust, and you get periodic income from that trust, then it's treated like any other foreign income.

I can't post a link either because of the same reasons as britzinoz, but if you go to the Australian google site and enter "tax obligations of beneficiaries", then the first link that shows up is where I got the above information from.

---

wildroses81
New Member



Joined: 31 Jul 2008
Posts: 8

Posted: Thu Aug 21, 2008 8:21 am

 

---

Thanks so much, you were both very helpful. It looks like in the clear;)

---