What are the tax consequences when you inherit a house in Denver and need to sell it?

If you inherited a property in Denver and you're wondering whether selling it will trigger a massive tax bill, the answer for most families is: probably far less than you expect, because of something called the stepped-up basis. The property's taxable cost basis resets to its fair market value at the date of death, not what your parent or grandparent originally paid for it decades ago. That single rule is the most overlooked piece of practical information in the entire probate process. Most families I talk to have spent weeks in a quiet panic about capital gains, doing mental math based on what grandma paid for her Arvada ranch in 1978. Once they understand the stepped-up basis, the whole picture changes. It doesn't eliminate every cost or every decision, but it changes the math enough that a clear, steady plan becomes possible instead of a reactive scramble. Timing still matters. Selling as-is versus making updates before listing, coordinating with the estate attorney, understanding what Denver's current market actually supports for a property that hasn't been touched in years, those are the real choices in front of you. The tax piece, once understood, usually opens the door rather than closing it. If you're sitting on an inherited Denver property right now and your first call was to a CPA rather than someone who works probate sales regularly, I'd genuinely ask: did that conversation include what the property could realistically net in today's market before any decisions got made?