topic IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR? in Get your taxes done using TurboTax

IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR?

scocpm — Tue, 10 Mar 2026 07:24:06 GMT

I am currently selling my inherited home and after the stepped up basis at all costs associated with selling the house I will have an approximately $10,000 gain. The house will sell under a year from when I inherited it. Will this be considered a short term gain or a long term gain? I’m confused because I read some where that inherited homes are considered long term property even if sold within a year. Any information would be appreciated.

Re: IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR?

Anonymous_ — Sun, 11 Dec 2022 21:03:45 GMT

Long term.

See https://www.law.cornell.edu/uscode/text/26/1014

Re: IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR?

DoninGA — Sun, 11 Dec 2022 21:07:56 GMT

Long term

IRS Publication 559 page 14 - https://www.irs.gov/pub/irs-pdf/p559.pdf#page=14

Holding period. If you sell or dispose of inherited property that is a capital asset, the gain or loss is considered long-term, regardless of how long you held the property.

Re: IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR?

Mike9241 — Sun, 11 Dec 2022 23:26:29 GMT

in Turbotax for date acquired there should be a drop down box that says inherited or type in inherited.

Re: IS AN INHERITED HOME THAT I SELL CONSIDERED A LONG TERM GAIN EVEN IF ITS UNDER ONE YEAR?

NCperson — Mon, 12 Dec 2022 00:40:15 GMT

@scocpm - all inherited assets are automatically considered 'long term' for capital gains tax purposes. THe one year holding period to get from short term to long term tax rates do not apply.

It's the same with stocks/ bonds, etc. example: Someone passes leaving you their XYZ stock. the very next day it 'shoots to the moon'. And on Day 2 you sell it all. You are taxed at long term rates; not short term rates.