Capital Gains
Understand how capital gains taxes impact inherited property and estate transfers. Learn about stepped-up basis rules and tax strategies families use for ass...
Do I have to pay capital gains tax on property I inherited from my parents?
Generally no, you won't owe capital gains tax on inherited property thanks to the "stepped-up basis" rule. When you inherit property, its tax basis automatically adjusts to the fair market value on the date of your parent's death, eliminating any capital gains that built up during their ownership. You'll only owe capital gains tax if you sell the property for more than its stepped-up value. This rule can save families thousands in taxes compared to receiving property as a gift during the owner's lifetime.
