Noel Whittaker outlines the likely ramifications in sale of inherited house.
Bec and her sister have inherited the family home, but Bec is keen to sell her share to her sister and asks Noel Whittaker if she is likely to incur a tax bill.
My sister and I have inherited the family home of 60 years. If I were to sell my half share to her side of the family, what tax would I have to pay and how would I go about it? Neither of us work as my sister was my mother's carer and I am not well enough. The home is valued at about $750,000.
A. Your accountant is the appropriate person to go to for advice, but the property should have passed to you free of any capital gains tax liability so your cost base will be the market value at the date of death of the owner. If you sell your share for that sum, there should be no capital gains tax to pay.
My wife is 66 and cannot make contributions to her superannuation as she doesn’t qualify under the work test rules. Can I make a spouse contribution even though she is 66? I am 64.
A. Unfortunately, the rules prevent people making contributions on behalf of their spouse once the spouse turns 65, unless the spouse can pass the work test. However, as you are 64, you can make non-concessional contributions to your own super, provided your total superannuation balance does not exceed $1.6 million.
Do you have a question you’d like Noel to tackle? Email us at [email protected]
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His answers are general in nature, and readers should seek their own professional advice before making any financial decisions.