Inheriting a Denver Home Doesn't Trigger a Giant Tax Bill — But Selling It Wrong Might

Most families I talk to who've inherited a Denver property assume they owe taxes on the full value of the home. That assumption costs them real money, and more importantly, it creates panic when there doesn't need to be any. Here's the clear truth: when you inherit a property, your cost basis is stepped up to the fair market value at the time of the person's death, not what they originally paid for it. That single rule changes everything about how you plan the sale. If the home was purchased in the 1980s for $90,000 and is worth $480,000 today, you're not sitting on $390,000 of taxable gain. You're starting from $480,000. What matters from that point forward is how quickly the property sells, what condition it's in, and whether the estate is positioned to close cleanly. A rushed sale in uncertain condition is the actual tax and financial risk, not the inheritance itself. The families who take a steady, practical approach, getting a clear picture of the property's current value, understanding the probate timeline, and making respectable decisions about what needs to be repaired versus sold as-is, tend to protect far more of what their loved one worked to build. The ones who panic and price low or skip proper documentation often leave real money behind. If you've recently inherited a Denver property and probate is still open, are you working with an attorney who has actually closed estate sales in Adams, Arapahoe, or Denver County, or are you figuring that part out as you go? — Kevin Lundy | The HomeBridge Group at eXp Realty