Estimate the inherited sale
Enter the value at the date of death as the stepped-up basis, the sale figures, any balances, and the number of heirs.
Enter your figures to calculate.
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Inherited Property Sale Calculator
Estimate the tax and net proceeds when selling an inherited home, using the stepped-up basis that usually keeps capital gains small, and split the result among heirs. This is a planning tool, not tax or legal advice.
Selling or buying soon
A calculator is a starting point. Get a full picture with a direct review of payoff, taxes, title, condition, and timing.
Why the tax is usually small
Inherited property generally gets a stepped-up basis equal to the value on the date of death. If you sell soon after, the gain is the difference between the sale price and that stepped-up value, which is often small, so the capital gains tax is usually modest. The bigger questions are usually clearing title, probate, and dividing the proceeds.
How selling an inherited home is taxed
When you inherit a home, your basis for tax is generally stepped up to the fair market value on the date of death rather than what the deceased originally paid. That step-up usually erases most of the built-in gain, so selling shortly after inheriting often produces little or no capital gains tax. This is very different from selling a home you bought yourself, which is why a general capital gains tool can mislead heirs.
From the net proceeds, the estate still pays off any loan, liens, and selling costs, and the remainder is divided among the heirs. Probate status, clear title, and whether the home was used as a residence can all affect the result, so confirm the details with your attorney and tax professional before relying on a figure.
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Inherited sale FAQs
What is a stepped-up basis?
When you inherit property, your tax basis is generally reset to the fair market value on the date of death. That step-up usually erases most of the built-in gain, so a sale soon after inheriting often has little or no capital gains tax.
Do I owe capital gains tax on an inherited home?
Often very little. Because the basis is stepped up to the date-of-death value, the taxable gain is usually just the appreciation since then plus or minus selling costs. Confirm with a tax professional, especially if the home was held a long time before selling.
How are proceeds split among heirs?
After paying any loan, liens, and selling costs, the net proceeds are divided among the heirs according to the will or Illinois intestacy rules. This tool divides the net evenly by the number of heirs as a starting estimate.
Do we need probate to sell?
Often yes, unless the property passed through a trust or a transfer-on-death instrument. Probate, clear title, and authority to sell should be confirmed with your attorney before listing or accepting an offer.
This calculator is general information for Chicago-area owners, buyers, and investors. It is not legal, tax, lending, appraisal, or brokerage advice, and rates or rules can change. Verify figures with the appropriate professionals before money moves or documents are signed. Inherited property tax basis, probate, and heir distribution depend on your specific facts. Confirm with your attorney and tax professional.