Step-Up in Basis is a real estate term you will encounter when buying or selling a home in Ventura County. This page gives you a plain-English definition and explains why it matters.
What it means
Capital gains are calculated on the difference between the sale price and the cost basis. When property is inherited, the basis generally steps up to the date-of-death value, so an heir who sells soon after may owe little or no capital gains tax on prior appreciation. This is a key tax benefit of inheriting rather than receiving property as a lifetime gift.
Why it matters to buyers and sellers in Ventura County
For Ventura County heirs, where homes may have appreciated significantly over decades, the step-up in basis can mean major tax savings if the property is sold near the time of inheritance. Confirming the date-of-death value is important. Brian works with families and their tax advisors on inherited-property sales.
Frequently Asked Questions
How does step-up in basis save on taxes?
It resets the property's basis to its value at the owner's death, so heirs who sell soon after may owe little capital gains tax on appreciation that occurred during the owner's life.
Do I need a date-of-death appraisal?
Often yes. A valuation as of the date of death documents the stepped-up basis, which a real estate professional or appraiser can help establish.
Does a gift get a step-up in basis?
No. A lifetime gift generally carries over the giver's original basis. The step-up typically applies only to inherited property.
