@HelenC12
Regarding capital gains on inherited property (and losses), you can claim a capital loss on inherited property if you sold it and all of these are true:
- You sold the house in an arm’s length transaction.
- You sold the house to an unrelated person.
- You and your siblings didn’t use the property for personal purposes.
- You and your siblings didn’t intend to convert the property to personal use before the sale.
An arm’s length transaction is a transaction where the buyers and sellers have no relationship to each other. Except when handling an inheritance, related parties include:
- The estate
- The executor
- Beneficiaries of the estate
