Do you owe taxes when you inherit a house in Denver and sell it?

Most people who inherit a house in Denver assume they will owe a massive tax bill if they sell it. The reality is almost always the opposite. The stepped-up basis rule means your taxable gain is calculated from the property's value at the date of death, not what grandma paid for it in 1978. Sell it within a reasonable window after inheriting, and most families pay little to nothing in capital gains tax. The confusion comes from mixing up estate taxes, inheritance taxes, and capital gains taxes, and treating them like the same thing. Colorado has no state inheritance tax. Federal estate tax only kicks in on estates above $13 million. What actually creates urgency is not the IRS deadline, it is the carrying costs piling up while the property sits: insurance, utilities, property taxes, and deferred maintenance. A steady, clear plan for the property protects more of the estate than panic-selling or waiting too long ever will. The practical choice is to get accurate information first, then make the decision, not the other way around. The most expensive tax on inherited property in Denver is not a government one, it is the cost of carrying a home nobody is living in while the family tries to sort everything out. Are you dealing with an inherited property in Denver right now where the family still has not agreed on whether to sell, rent, or keep it?