Submitted By: someone
Answered: October 24, 2022 11:56 pm

When a homeowner dies, can title pass to heirs tax free?

When a homeowner dies, heirs who inherit the residence get a stepped-up basis equal to the value of the residence on the date of date. The heirs do not pay tax on an inheritance; it’s tax free to them. And their basis in the home for purposes of a future sale is the value on the date of death, or the alternate valuation date six months later if the deceased homeowner’s estate elected to use this other date for federal estate tax purposes.

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Tax Glossary

Depreciable property

A business or income-producing asset with a useful life exceeding one year.

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