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  • Inheriting a dwelling from someone who inherited it themselves




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    Example 88: Partial exemption for beneficiaries

    Ahmed acquired a dwelling after 20 September 1985.


    Under his will, Ahmed left the dwelling to his son, Fayez. Fayez was the sole beneficiary of Ahmed’s estate. No other individual had a right to occupy the dwelling under Ahmed’s will.

    Some years later, Fayez died. He had owned the dwelling for 2,600 days and it wasn’t his main residence at any time during this period.

    The dwelling was left to Mardianah under Fayez’s will.

    Mardianah sold the dwelling in 2012–13 and made a capital gain of $100,000. She owned the dwelling for 750 days and it wasn’t her main residence at any time during that period.

    The taxable proportion of Mardianah’s $100,000 capital gain is $47,518. This is worked out as follows:



     2,600 + 750
    2,600 + 750 + 3,700




    Because Mardianah gets an exemption for the period the dwelling was Ahmed’s main residence, her capital gain is less than it otherwise would have been.

    End of example

    For more information about deceased estates, see Deceased estates.

      Last modified: 08 Jul 2015QC 44187