Capital gain inheritance: how to calculate tax when selling an inherited house?

Extract: Selling an inherited home can create a taxable capital gain. Discover how to calculate it and optimize your taxes with peace of mind.

Selling a property acquired through inheritance requires careful planning. The capital gain is determined based on the property's fair market value at the date of death, not the original purchase price. If sold for a higher price, a tax of up to 36.2% applies.

Understanding the calculation basis

The inheritance capital gain equals the difference between the sale price and the declared market value in the inheritance process. For example, if a property valued at €300,000 is sold for €400,000, the gross capital gain is €100,000. This amount forms the basis for the tax calculation.

Accurate valuation is essential: undervaluation increases potential tax, while a fair appraisal limits financial exposure.

Duration-based deductions

Deductions increase with time. After 22 years, income tax on capital gain is fully exempt; social levies are eliminated after 30 years. Proof of continuous ownership since the inheritance date is required to benefit from these reductions.

Total exemption cases

If the inherited property has become your main residence, any sale is fully exempt from capital gain taxation, regardless of ownership duration. This offers vital relief for heirs living in their inherited home.

Advice from Nicolas Immobilier agency in Massy, Palaiseau and Chilly-Mazarin

At Nicolas Immobilier, we guide heirs through every inheritance and sale with precision and care. Our deep expertise in the local market ensures fair property valuations via our free online tool and personalized support.

Learn more about us on the About page, or read client testimonials praising our transparency and efficiency. You can also explore our listings to buy in Massy, Palaiseau, or Chilly-Mazarin at this link.

Nicolas Benoit, director of Nicolas Immobilier, has successfully guided over 1,400 satisfied clients thanks to his expertise and genuine market understanding.

key topics

• Capital gain
• Inheritance
• Deduction
• Main residence
• Taxation