capital gains inherited property
Once probate ends and the property officially transfers to the heir's name, selling that property is taxed the same way as any other property sale: on the capital gain, with the same progressive rates, the same FR1 and FR2 factors, and the same article 18 reduction table. The only real difference is which acquisition value to use, and that is what usually confuses someone selling an inherited property for the first time.
The acquisition date used is 1990, not the date the heir received the property, and the value is the one declared in probate or on the deceased's last tax return.
The single-property exemption looks at the heir's own sales in the last 5 years, not the deceased's.
Because one of the two reduction factors, FR2, does not depend only on when you bought the property: it keeps growing every month between December 2005 (or the acquisition date, if later) and the month the sale actually happens. Two people who bought in the same month but sold in different years end up with different FR2 values. It is a detail most competing calculators ignore or treat as fixed.
It is the date the deceased originally bought the property. That date drives both the article 18 table reduction (for properties up to 1988) and the FR1/FR2 factor calculation, so an old property inherited recently still benefits from the reductions tied to when it was bought, not to when it was inherited.
No, they are different taxes. ITCMD is paid at the time of the inheritance transfer, on the property's value at that time, it is a separate state-level tax. This calculation here is the federal income tax on the capital gain, charged only later, when the heir actually sells the property to a third party.
| Bracket | Rate | Tax |
|---|---|---|
| from R$0.00 to R$5,000,000.00 | 15% | R$20,662.62 |
| Adjusted acquisition cost | R$280,000.00 |
| Net sale value | R$500,000.00 |
| Gross gain | R$220,000.00 |
| Article 18 reduction (Law 7,713/1988) | 0% |
| Gain after the article 18 reduction | R$220,000.00 |
| FR1 reduction factor | 1.0000 |
| FR2 reduction factor | 0.6261 |
| Taxable gain before exemption | R$137,750.82 |
| Exempt portion | R$0.00 |
| Taxable portion | R$137,750.82 |
Revenue code 4600 is the one most cited by specialized tax accounting sources for this kind of gain, but it was not confirmed in an official table from Brazil's federal tax authority in this review. Confirm it with an accountant before issuing the payment slip.
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