California Probate
What is a stepped-up basis and why does it matter in California?
Short answer
When you inherit an asset, its cost basis for capital gains purposes is "stepped up" to the value at the date of death. This means if you sell an inherited home that the deceased bought for $100,000 but was worth $600,000 at…
What this usually means
When you inherit an asset, its cost basis for capital gains purposes is "stepped up" to the value at the date of death. This means if you sell an inherited home that the deceased bought for $100,000 but was worth $600,000 at death, you owe capital gains tax only on appreciation after the date of death — not the full $500,000 gain. This is a significant tax benefit. Consult a CPA before selling inherited assets.
What to do next
- Start the PathAfter checklist for situation-aware first steps.
- Find California county phone numbers for coroner, vital records, and local offices.
- Open the First 72 Hours Call Log before making calls.
- Open the Documents to Find Checklist when you are ready for paperwork.