Do I pay capital gains tax on an inherited home?

Paying capital gains tax on an inherited home comes down to your basis, which usually resets to the home's value on the date you inherited it rather than what the original owner paid decades earlier. Selling close to that value often means little or no taxable gain, while holding the home and letting it appreciate further before you sell can create one. Brian Beatty provides a valuation tied to the date of inheritance so your CPA has a real number to work from instead of a guess.