[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/nmichlaw.com\/blog\/the-step-up-basis-of-inherited-property-and-what-it-means-when-you-sell\/#BlogPosting","mainEntityOfPage":"https:\/\/nmichlaw.com\/blog\/the-step-up-basis-of-inherited-property-and-what-it-means-when-you-sell\/","headline":"The Step-Up Basis of Inherited Property, and What It Means When You Sell","name":"The Step-Up Basis of Inherited Property, and What It Means When You Sell","description":"When you inherit a piece of real estate from your parents upon their passing, you may not want to keep it. Say you and your family have your own family home in Grand Rapids, and your parents lived in Traverse &hellip; <a href=\"https:\/\/nmichlaw.com\/blog\/the-step-up-basis-of-inherited-property-and-what-it-means-when-you-sell\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a>","datePublished":"2020-11-24","dateModified":"2025-05-09","author":{"@type":"Person","@id":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/#Person","name":"Alward Fisher","url":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/","identifier":10,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Alward Fisher","logo":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","width":288,"height":103}},"image":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/10\/feature-home-mobile-1.jpg","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/10\/feature-home-mobile-1.jpg","height":"100","width":"100"},"url":"https:\/\/nmichlaw.com\/blog\/the-step-up-basis-of-inherited-property-and-what-it-means-when-you-sell\/","about":["Estate Planning"],"wordCount":345,"articleBody":"When you inherit a piece of real estate from your parents upon their passing, you may not want to keep it. Say you and your family have your own family home in Grand Rapids, and your parents lived in Traverse City, in what used to be your family cottage. They moved to it when they retired. They leave you the home, but you\u2019re not interested in a second home or in moving, so you decide to sell.Your concern is that you\u2019re going to have to pay a lot in capital gains taxes. You know that your own parents bought that house when it was worth just $50,000, but it\u2019s worth ten times that much today. Are you going to have to pay capital gains on $450,000?Stepping upYou will not. The IRS is going to\u00a0step up the value\u00a0of that house to whatever it was worth when your parents left it to you. This can mean that you have to pay far more in property taxes than they did, but it also adjusts the value if you decide to sell.Say the IRS values the home at $400,000. You are able to sell it for $500,000 in a hot market a few months later. You did earn that $450,000 more than the original price, but you only sold it for $100,000 more than the new value. You are only going to be taxed on the extra $100,000.Exploring your optionsWhether you\u2019re drafting an estate plan or deciding what to do with a home your inherited, make sure you explore\u00a0all of the options you have.About the AuthorLatest PostsAlward FisherAt Alward Fisher, we provide more than savvy legal representation. We provide peace of mind. Peace of mind for your business. Peace of mind for your family. And the peace of mind for your future. No matter what types of legal challenges you are facing, we can help you find solutions.Can Someone with the Power of Attorney Change a Will?Can a Divorce Be Denied in Michigan?What Is the Downside of Collaborative Divorce?"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/nmichlaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"The Step-Up Basis of Inherited Property, and What It Means When You Sell","item":"https:\/\/nmichlaw.com\/blog\/the-step-up-basis-of-inherited-property-and-what-it-means-when-you-sell\/#breadcrumbitem"}]}]