Mortgages

When you keep and occupy the home you inherited as well as one you may have owned previously to the inheritance you will have to tell the Tax Office. The tax office is going to require knowledge of which home is your main home.

They are also going to look at the Capital Gains Tax. Keep in mind that if you are selling your main home you are usually free of Capital Gains Tax so if you decide to sell the inherited home later on and it is not the main home on record you are subject to the CGT. The key thing to remember is that you can change your mind later on about which home is the main home, but you need to make sure you do not do this close to selling the home. In other words if you change the status just to avoid the tax there can be significant repercussions.

The inherited property may also have a mortgage that you are responsible for. This can make the decision to sell that much more important if you want to keep two homes. If there is a mortgage you may decide you have to sell one property, unless the other property is owned outright.

This entry was posted on Wednesday, January 16th, 2008 at 8:24 am and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.