The aim of my generation and those prior was to “leave it for the kids”.
If you don’t have a valid “will” you are said to have died “intestate”. God help those who are left to sort out the affairs of those without a will.

From the 70’s, property investment has been an excellent vehicle to amass that $900 000 (to live off the interest) and then pass on the balance. The tax rule of the main residence of the deceased differs to an investment property. With the rule changes, good record keeping is essential and will prevent Government (upon your demise) from obtaining more than their fair share. The moral: Think before you buy an investment property. Discuss with your solicitor and accountant before you visit the agent and consider “succession law”.

Example:
Consider Dad bought, in his name only, a local rental property for $70 000 in 1994 but dies in 2000.
For exercise to remain simple:
Mum pre-deceased Dad
You are the only child
The tax department disregards the value at the sale of death and the base cost remains $70 000 being the original purchase price and stamp duties.
In 2000, the property was worth $100 000 and transferred to your name on Dad’s death. You wisely decided to continue to rent the property out and sell it at the top of the market in January 2004 for $300 000 (after costs).
You are liable to pay tax as follows:
Sale Price $300 000
Purchase Price $70 000
Capital Gains Tax is $230 000
Tax on $115 000 at top marginal rate = $50 000 plus

We use and recommend Accountants
MTA Tax Don Scott - (07) 3863 1311
Peter Radford Tax- (07) 5495 2911

The Government have their hands in your pocket from the "Cradle to the Grave"
Minimise your Tax and pay for their services - and SAVE, SAVE....SAVE

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