https://ttlc.intuit.com/community/taxes/discussion/sold-inherited-property-life-estate-capital-gains/01/2791851#M1030289 <P>Relative created and added me to a Life Estate on her house in 2012. She passed away August 2022 and I have sold the house this month for less than $500k. My understanding is that I will have no tax obligation from this due to inheritance tax thresholds and step-up in cost basis rules that set my cost-basis amount for the property to market value at the time of her death. Since she passed in September 2022 and I sold the property in November 2022 then there should be capital gains to be taxed correct? If I am subject to Capital Gains then how is Market Value at Time of Death calculated?</P> Tue, 10 Mar 2026 06:55:46 GMT daddison 2026-03-10T06:55:46Z https://ttlc.intuit.com/community/taxes/discussion/sold-inherited-property-life-estate-capital-gains/01/2791851#M1030289 <P>Relative created and added me to a Life Estate on her house in 2012. She passed away August 2022 and I have sold the house this month for less than $500k. My understanding is that I will have no tax obligation from this due to inheritance tax thresholds and step-up in cost basis rules that set my cost-basis amount for the property to market value at the time of her death. Since she passed in September 2022 and I sold the property in November 2022 then there should be capital gains to be taxed correct? If I am subject to Capital Gains then how is Market Value at Time of Death calculated?</P> Tue, 10 Mar 2026 06:55:46 GMT https://ttlc.intuit.com/community/taxes/discussion/sold-inherited-property-life-estate-capital-gains/01/2791851#M1030289 daddison 2026-03-10T06:55:46Z https://ttlc.intuit.com/community/taxes/discussion/re-sold-inherited-property-life-estate-capital-gains/01/2791868#M1030290 <P>Edit meant to add a "no" at the end... "<SPAN>then there should be <U><STRONG>NO</STRONG></U> capital gains to be taxed correct?"</SPAN></P> Wed, 16 Nov 2022 19:05:01 GMT https://ttlc.intuit.com/community/taxes/discussion/re-sold-inherited-property-life-estate-capital-gains/01/2791868#M1030290 daddison 2022-11-16T19:05:01Z