How to Determine the Cost Basis of Inherited Property
January 6, 2026
Inheriting property can feel overwhelming, especially when you're trying to figure out the tax implications. The good news is that you're likely entitled to a significant tax benefit called "stepped-up basis" that could save you thousands of dollars when you eventually sell. Understanding how to determine the cost basis of inherited property is crucial for making informed decisions about your inherited asset.Whether you've recently inherited a family home, investment property, or business, you need to know your cost basis to calculate potential capital gains taxes accurately. We'll walk you through the entire process, from understanding the stepped-up basis rule to getting the professional appraisal you might need.