Do You Still Need To Pay Taxes When Selling a Home You Inherited in Myrtle Beach?

by | Jul 15, 2025 | Uncategorized


The stepped-up basis rule could save you thousands when selling inherited property. Find out how and when it applies.

Do you have to pay taxes if you sell an inherited property in Myrtle Beach? The truth is, it depends on a few key factors, like when you sell, how much the property is worth, and whether you keep it or not. I recently had to figure this out myself, and I’m sharing below what I learned about selling an inherited property. Here’s what you need to know.

How inherited property is taxed. When someone passes away and leaves you a house, there’s a tax rule called a stepped-up basis. It means the value of the home resets to what it was worth on the date they died, not what they paid for it originally. This helps lower or even erase the capital gains tax if you sell soon after.

Let’s say your aunt bought a house decades ago for $50,000. When she passed away, the house was worth $550,000. If you inherit it and sell it shortly after for around the same amount, you probably won’t owe any taxes. That’s because the new value for tax purposes is $550,000, not the $50,000 she originally paid.

The stepped-up basis tax rule resets the inherited home’s value and helps lower or erase the capital gains tax if you sell soon.

What if you sell the property years later?  Now, let’s say you keep the home for 10 years and it goes up in value. If you later sell it for $750,000, you’ll likely owe taxes on the gains from the stepped-up value of $550,000 to the sale price of $750,000. That’s where the capital gains tax comes in.

However, if you decide to live in the home and make it your primary residence, the tax situation could change. There are possible reductions in what you owe, but that’s a whole other topic for another day.

Selling an inherited home can bring up a lot of questions, especially around taxes. If you’re not sure what to do next, I’m here to help. Call me at (843) 251-2693 or email me at greg@gregsisson.com. Let’s go over your options together.