Capital Gains Tax on Inherited Property: What Heirs Need to Know | #capital gains tax on inherited property

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Capital Gains Tax on Inherited Property: What Heirs Need to Know

Capital gains tax is based on the profit made from selling an asset. When property is inherited, the tax system uses what is called a “stepped-up basis.” This means the property’s value is adjusted to its fair market value at the time of the original owner’s death.

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