Posted by phil fernandez on February 23, 2002 at 19:26:58:
Great position to be in. First off inheriting the house, the beneficiary of the estate, the heir will acquire the property at the current market value. His basis will be established with this current market value upon the death of the owner. So even if the heir sold for all cash, there shouldn’t be any capital gain. The heir might as well sell for cash as there won’t be a gains tax involved.
He probably could sell the house for a bit more if he offered owner financing. Also not a bad position to be in.