Selling Inherited Property: Step-Up in Basis Explained

If you inherited a property, you might owe far less tax than expected — thanks to the step-up in basis rule.

What It Means:

• Your cost basis resets to the property’s fair market value on the date of inheritance.

• Only gains after that date are taxable.

Example: If your parents bought the home for $100,000 and it’s worth $600,000 when inherited, your basis becomes $600,000. Sell for $620,000 — only $20,000 is taxable.

💡 Key Takeaway: Inherited property often carries little to no taxable gain if sold promptly.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.