Tax Considerations for Inherited Homes
Taxes are one of the first questions heirs ask about. While every situation is different, a few general concepts are helpful to understand before speaking with a tax professional.
Quick Answer
Will I owe taxes when I sell an inherited house?
It depends on your basis, the sale price, and your circumstances. A tax professional can tell you what applies.
Cost Basis
Under federal rules, inherited property often receives a “stepped-up” cost basis, generally equal to the property’s value at the date of death. This can significantly affect any capital gain when the home is later sold. Exceptions and special rules exist, so confirm with a qualified professional.
Property Taxes and Ongoing Costs
Property taxes continue while you own the home. In California, Proposition 19 changed how property tax assessments transfer between parents and children, which can affect heirs who plan to keep the home. Texas and Utah have their own exemption and assessment rules.
Getting the Right Advice
We are not tax advisors, but we can provide a clear evaluation of the property that your CPA or attorney can use in their planning.
This guide is general information only and is not tax or legal advice. Tax laws change and depend on individual circumstances — please consult a licensed tax professional.
Talk With a Inherited Property Specialist
Tax Considerations for Inherited Homes Property FAQ
Will I owe taxes when I sell an inherited house?
It depends on your basis, the sale price, and your circumstances. A tax professional can tell you what applies.
Can you provide a valuation for my CPA?
We can share our evaluation and how we reached it. Your CPA may also recommend a formal appraisal.