Reflection on

I thought it was interesting to compare the sale of inherited property to that of gifted property, especially when considering the step$-$up in basis protocol. With inherited property, the tax basis is $$stepped up$$ to its fair market value $($FMV$)$ at the time of the decedent$$s death. For example, if my grandfather bought a home for $$20,000$ and its value increased to $$300,000$ at the time of his death, when I inherit and then sell the property, my basis is $$300,000.$ This means I would neither incur a capital gain nor a loss if I sold it immediately after inheritance.