US Inheritance Rule Cuts Tax Shock
Posted on July 19th, 2026 in Uncategorized | No Comments »
Inherited US homes usually get a stepped-up basis, resetting cost to fair market value at death instead of the original purchase price.
That means a home worth $450K at inheritance and sold for $460K later may create only ~$10K of gain before selling costs.
With US prices only slightly higher yearly, heirs who sell soon after inheriting often face little added appreciation beyond the stepped-up basis.
Because the reported gain is usually smaller, the sale often avoids sharply higher taxation of retirement benefits and reduces risk of future federal health-premium surcharges.
Before selling, secure a date-of-death appraisal, track selling costs and improvements, and remember longer holding periods can build new taxable gain later.