Inheriting a house may not result in capital gains tax when selling

From Yahoo Finance: 2025-04-21 08:30:00

Upon inheriting a house, you may not owe capital gains tax when selling due to the “stepped-up basis” tax provision. The $250,000 or $500,000 exclusion for profits on primary residence sales applies, regardless of who’s on the deed. If selling immediately after inheritance, your gain may be minimal or zero due to the property’s stepped-up cost basis. To find a financial advisor for tax planning or investment advice, use SmartAsset’s tool to connect with vetted professionals. Keep an emergency fund in a liquid account, and compare high-interest savings options. Expert Brandon Renfro, CFP®, answers personal finance questions.



Read more at Yahoo Finance: Are Capital Gains Taxes Due If We Sell an Inherited Home?