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Most people think inheriting a house automatically comes with a huge tax bill — but that’s not always true.👉 If your parents gift you their home while they’re alive, you inherit their original purchase price as your basis. That can mean huge capital gains when you sell.👉 But if you inherit through their will or a revocable living trust, the house gets a step-up in basis — the value resets to fair market value at the time of inheritance. If you sell right away, you may owe little to no capital
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Most people think inheriting a house automatically comes with a huge tax bill — but that’s not always true.👉 If your parents gift you their home while they’re alive, you inherit their original purchase price as your basis. That can mean huge capital gains when you sell.👉 But if you inherit through their will or a revocable living trust, the house gets a step-up in basis — the value resets to fair market value at the time of inheritance. If you sell right away, you may owe little to no capital
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