A neighbour received a small commercial rental property in 2011 when husband died. He inherited the property in the 1970s. Property still in husbands name I am told no tax paid at any time. Widow has now agreed to sell the property for 130,000. These people have always lived on social welfare and cash economy and are not used to tax. Is here a CGT liability here ? How do we establish the historical values. They have never lived in this premises.
The widow needs to establish the value of the property as at her late husbands date of death.
The profit , if any , between that value & the sale proceeds is liable to CGT .
It would appear that the late husbands estate has not been properly administered if the property is still in his name , I cannot see how the property can be sold until the estate is properly administered
Thanks for your interest.
No, the rent is never declared. Its always cash.
I think they are going to transfer it from the deceased husband to the 3 children and they will be the sellers and then give the widow the proceeds.
It that one way of avoiding the CGT ?
The next time you hear about shortages of public services, health waiting lists, blame your neighbours, as they appear to be evading tax, and may be illegally claiming social welfare payments.