Quick answer
What you need to know
Sale proceeds are not the same as taxable gain. Inherited property generally takes a basis tied to its value at death, with exceptions. The federal basic estate tax exclusion is $15 million for someone who dies in 2026; that exclusion is separate from income tax on a later sale.
How stepped-up basis applies to inherited property
The IRS says inherited property generally has a basis equal to fair market value at the date of death, or an alternate valuation date if properly elected. The adjustment can be downward as well as upward. Gifts made during life and some inherited assets follow different rules. See the IRS guidance on gifts and inheritances.
Ask your CPA which valuation and ownership records apply before the sale. A price tag, online asking price, and documented date-of-death value serve different purposes; do not treat them as interchangeable.
The 2026 estate tax exclusion is $15 million
The IRS confirms a $15,000,000 basic exclusion for estates of people who die in 2026. Earlier forecasts of a reduction to roughly $7 million are outdated. Ask the estate’s adviser about prior taxable gifts, filing requirements, and any available spousal exclusion.
Estate tax and income tax on a sale are separate questions. An estate that owes no federal estate tax may still have income-tax reporting obligations.
A sale can still create a reportable gain
For illustration, selling an item for $2,100 with a $2,000 adjusted basis produces a $100 gain before any applicable selling-cost adjustments. The correct calculation depends on the asset and circumstances. Selling soon after an inheritance does not by itself establish that no tax is due.
Collectibles can have different capital-gains treatment, including a maximum 28% rate for certain gains. Personal-use losses generally are not deductible. See IRS Topic 409. Ask your adviser who reports the sale—the estate, a trust, or a beneficiary—and whether other state or federal rules apply.
Build a record your adviser can use
- Keep the inventory, photographs, and any appraisal or valuation documents.
- Retain the sale agreement, itemized transaction report, settlement statement, and approved expense invoices.
- Record what the family kept, what sold, what was donated, and what remains.
- Give your adviser ownership and distribution information, including who received the proceeds.
Estate Greats provides itemized sale reporting. If you need a written appraisal for a particular purpose, discuss that purpose and the required scope with our appraisal team before booking. Routine sale pricing is not automatically a tax appraisal.
Questions to resolve before the sale
Ask your CPA or estate attorney which basis applies, whether a formal valuation is needed, who reports the proceeds, and which expenses or records matter. Share the sale date and property deadline early enough for those questions to be answered.
This guide provides general information, checked against the linked IRS guidance on September 10, 2026. Estate Greats manages the sale and its records; it does not provide tax or legal advice.
Talk through the household
Not sure what your next step should be?
Estate Greats offers a free, no-obligation consultation for families, executors, and homeowners in Nashville and the surrounding Middle Tennessee service area. We will ask about the home, the sale inventory, access, and timing, then explain whether an in-home or offsite estate sale is a practical fit.