Clock ticking on claiming CGT exemption
When I inherited my brother's property, I was told I had two years to sell, and after that it would be subject to capital gains. Could you please inform me if my information is correct?
It is correct if the property was covered with his main-residence exemption at date of death or if he bought it before September 20, 1985. If you don't sell it within two years from his death, you will be liable for capital gains tax on any increase in value in the property from the date of his death, after deducting selling costs and any holding costs not otherwise claimed as a tax deduction during that period. Of course, if it has been covered by your own main-residence exemption since he died, then CGT will not apply to any gain since he died.
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