A husband and wife owns a property as tenants in common. Upon husbands death, the will states that his half share passes to the wife so she inherits this at market value at date of death. The wife now owns the property 100%. Upon sale of the property, does the property need to be treated as two seperate sales considering it was once owned as tenants in common, or can the two base costs be added together in one calculation? The owner has prepared a separate draft calculation for each half owned and it has completely thrown me.
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What difference does it make? Isn't the answer (i.e. the gain taxable) the same in each case?
But it's one sale, and one calculation should suffice.
Base costs are different
Half the original for the wife
Plus
Half the probate value inherited on husbands death
But one calculation including the two parts should suffice as indexation etc are no longer relevant