Hi,
Capital Gains tax for individuals, calculations? and exemptions?
Any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain. This gain or profit is comes under the category ‘income’, and hence you will need to pay tax for that amount in the year in which the transfer of the capital asset takes place. This is called capital gains tax, which can be short-term or long-term.
Capital gains are not applicable to an inherited property as there is no sale, only a transfer of ownership. Depending on the amount of time that the asset has been held, the calculation of Capital Gains will vary. For calculations and exemptions read here.