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| *Loan,banking and credit>>>property tax |
Is capital gains tax not payable if you live in the inherited property for the period of one year? |
when my mother passed away i was left a house that i rent out if i sold it id have to pay capital gains tax on the amount above the areed valuation.ive been told that if i moved into the dwelling and lived there for one year that tax would not be payable if i then sold it......is this true If you live in the house as your only or main residence, then the last 36 months of your ownership will be exempt from Capital Gains Tax (CGT). You don't have to live there for one year, it could be less, but it must genuinely be your only or main residence for that period. Assuming you do move in, when you later sell the house, if you've owned it for 36 months or less you won't pay any CGT. If you've owned it for more than 36 months you could have to pay CGT on the extra years, but that would be reduced by lettting relief, taper relief and your annual allowance and may actually end up with nothing to pay. In the UK, Steven's information about living there for 3 out of the 5 years before sale is incorrect. Source(s): Accountant http://www.hmrc.gov.uk/helpsheets/ir283.... When you inherit property, the tax basis resets to the value at the date of death. Any gain after that time is subject to the same rules as if you had purchased the property on that date for that price. Gains on your PRIMARY residence are excluded from income if you live there 3 of the 5 years proceeding the sale. |
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