Labour’s CGT will include your family home – eventually

Jacinda Ardern said on Larry Williams that the family home will not be subject to CGT when you die, if the inheritors live there.

Now think about that. Most people die about age 80. So Jacinda is saying that if you live at home with your 80 year old parents, then the family home escapes CGT. Otherwise it will have CGT applied as a de facto estate tax.

Most elderly people stay in their final home for 20 – 25 years. Say they purchased it for $300,000 and now worth $900,000. Apply a 33% CGT to the $600,000 “gain” and that’s a $200,000 tax bill for the estate.