Capital gains tax on inherited property

[Pam nolan]

My mother passed away 2 years ago leaving me as executor to her will. Her home is to be sold and split 6 ways between me and my siblings. House has increased in value by 66k since date of death, hence CGT liability. Question is; there was 32k outstanding on the mortgage which we paid off using a life insurance policy (27k) and the balance we paid ourselves. Can this be offset as an acquisition expense?

 

[john luc]

The mortgage debt is deducted from the value of the house before you access how much is left to divide among ye all however you issue is what value you put on the house when you sent in the probate papers. That's the inheritance valuation and if you later sell the asset for greater than this then capital gain will apply to the increased value. A lot of people do not get tax advise when doing probate and this issue is one that pops up alot