Selling a Parent’s House or Settling an Inherited Home in Ventura County

If you are handling a parent’s home after they have passed, you are likely managing grief, paperwork and a property all at once. This page walks through selling or keeping an inherited home in Ventura County: how the tax basis works, probate or trust timing, working with other heirs and getting the home ready, so this part does not add to the weight you are already carrying.

I was born and raised in Oxnard. I’m a REALTOR® with Century 21 Masters and a licensed mortgage loan officer with 21st Century Lending. I handle the sale and work alongside the estate attorney, tax professional, trustee or executor you already have, and if an heir needs a loan to keep the home, I refer it to my lending team.

Hablo español. If Spanish is easier for you, read my guide to selling a home in Spanish or tell me when you reach out.

How stepped-up basis works on an inherited home

The most common worry I hear from heirs is a tax bill on everything the home gained since a parent bought it. For federal tax, that is usually not how it works. Under Internal Revenue Code Section 1014, an heir’s basis in inherited property is generally its fair market value on the date of death, or on the alternate valuation date if the estate’s personal representative elects it (IRS Publication 551). Your gain is measured from that value, not from what your parent paid.

A simple example

Suppose, hypothetically, a parent bought a home in 1985 for $150,000 and it was worth $800,000 on the date of death. The heir’s basis is generally $800,000. If the heir later sells for $820,000, the gain is figured from the $800,000 basis after selling costs, not from $150,000. Your tax professional works out the actual figure for your return.

Documenting the date-of-death value

Because the basis is tied to the value on the date of death, document that value. That usually means a retrospective appraisal by a licensed appraiser as of that date, which supports your figures if the eventual sale price differs. Getting it early, rather than scrambling at tax time, makes the sale and the reporting simpler. I can help you line up the appraisal and coordinate with the professionals who rely on it.

Surviving spouses and community property

In California, when a spouse dies, a home held as community property can generally step up in full, not only the half that belonged to the spouse who died, as long as at least half of it is included in the estate (IRS Publication 555). A home held another way, such as in joint tenancy, may be treated differently, so have a tax or estate professional check the title. A surviving spouse who sells may also be able to use the home sale exclusion, which my capital gains guide covers.

Exceptions to know

• A gifted home is different. A home given to you during the owner’s lifetime generally keeps the giver’s basis, called a carryover basis, rather than stepping up.
• Property given to the person who died. If you or your spouse gave appreciated property to the decedent within one year before the death and it comes back to you, it does not step up.
• Some trusts. Assets in an irrevocable trust that are not included in the decedent’s estate do not get a step-up (IRS Revenue Ruling 2023-2), so ask the estate attorney how the trust was set up.

If an heir moves in or rents it out

If you keep the home, any later gain is measured from the stepped-up value, and inherited property is generally reported as long-term no matter how long you hold it (Form 8949 instructions). If you then own it and live in it as your main home for two of the five years before a sale, the home sale exclusion may apply as well. Property tax is a separate question, covered under Prop 19 below, so talk with a tax professional before you decide.

Probate or Trust: It Affects Your Timeline

How the home was held shapes when you can sell. If the property was in a properly funded living trust, the successor trustee can usually act fairly quickly to sell or distribute it. If it goes through probate, the court process can take many months, during which the home may sit while still carrying costs. Knowing which path applies to your situation helps you plan realistically and avoid surprises. This is a place to lean on an estate attorney, and I work alongside the professionals you are already using.

When There Are Multiple Heirs

Often a home is left to several siblings, and not everyone wants the same thing. Some want to sell and split the proceeds, while one may want to keep the home. Both can work. If one heir buys out the others, that heir may need a loan for their share. I can refer them to my lending team at 21st Century Lending, or they can use any lender they choose, and every loan is subject to credit approval. If everyone agrees to sell, I help you present the home well and divide the proceeds cleanly. The key is making decisions together and structuring them correctly, since how a buyout or sale is handled can have tax and property-tax consequences.

Keep It or Sell It? The Property Tax Factor

If you are deciding whether to keep the inherited home, understand this distinction: the stepped-up basis protects you on capital gains whether or not you keep it, but property tax is a separate question. Under Proposition 19, a home passed from a parent to a child, or from a grandparent to a grandchild whose parent who was the grandparent’s child has died by the date of the transfer, keeps its taxable value only if it becomes the child’s or grandchild’s primary residence and they file for the homeowners’ or disabled veterans’ exemption within one year of the transfer. Even then, if the home’s market value is more than its taxable value plus $1,044,586 (the limit for transfers from February 16, 2025 through February 15, 2027), the difference is added. Other heirs, such as the owner’s brothers, sisters, nieces or nephews, do not qualify, and the home is generally reassessed to its market value. The claim is filed on Form BOE-19-P within three years; see the Board of Equalization’s Prop 19 page and talk with a tax professional or attorney. For many heirs, that potential property tax change is what tips the decision toward selling. It is worth running both scenarios before you decide.

Clearing a Lifetime of Belongings

Beyond the paperwork, there is the home itself, often full of decades of belongings. You do not have to rush this or do it alone. Estate cleanout services and senior move professionals can help sort, donate and clear a property with care, and pacing the process protects you from burnout during an already difficult time. Keep in mind that a vacant home still carries costs, needs the right insurance and can wear while it sits, so ask the insurer about vacancy early. When the home is ready, I help you prepare it for market so it shows well. My guide to preparing a home to sell is a useful starting point.

How I help heirs and executors

• I prepare a pricing opinion for the sale and can help you line up a date-of-death appraisal with a licensed appraiser.
• I coordinate the listing timeline with the trustee, executor or estate attorney, including any court steps in probate.
• I help clear, prepare and list the home, and keep every heir informed as offers come in.
• If an heir wants to keep the home and needs a loan, I refer them to my lending team at 21st Century Lending. Every loan is subject to credit approval.

You are free to choose any lender. Next steps: contact me with your questions, start with a free home valuation, or read my guides to capital gains on a home sale, selling a home and senior and 55+ real estate.

Common questions

Do I owe capital gains tax on my parent’s house when I sell it?

It depends on the sale price compared with your basis. An inherited home’s basis is generally its fair market value on the date of death, so the gain is usually measured from that value rather than from what your parent paid. Exceptions apply, so confirm your figures with a tax professional.

How long before I can sell an inherited home?

It depends on how the home was held. A home in a funded living trust can often be sold relatively quickly by the successor trustee. A home going through probate may take many months due to the court process. Knowing which applies helps you plan, and an estate attorney can confirm your timeline.

What if my siblings and I disagree about selling?

This is common and workable. Heirs can sell and split the proceeds, or one heir can buy out the others, sometimes with a loan for their share, which is subject to credit approval. How a buyout or sale is structured can carry tax and property tax consequences, so handle it with an estate attorney and a tax professional.

Will keeping the inherited home raise the property taxes?

It can. Under Proposition 19, a home passed from a parent to a child keeps its taxable value only if it becomes the child’s primary residence and the child files for the homeowners’ exemption within one year, and value above a set limit is added. Other heirs, such as the owner’s brothers or sisters, do not qualify, and the home is generally reassessed. Check the Board of Equalization’s Prop 19 page.

Is a gifted home treated the same as an inherited home?

No. A home given to you during the owner’s lifetime generally keeps the giver’s basis, called a carryover basis, rather than stepping up to market value. Talk with a tax professional before a home is transferred.

Disclosures

Edgar Limon, REALTOR®, CA DRE #02225743, with Century 21 Masters. Each office is independently owned and operated. Mortgage loan originator, NMLS #2256286, with 21st Century Lending, NMLS #241835, a division of Full Realty Services, Inc. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act and California Financing Law. Loans made or arranged pursuant to a California Financing Law license. Verify licenses at NMLS Consumer Access. Century 21 Masters and 21st Century Lending are affiliated companies. You are not required to use 21st Century Lending, or any particular lender, as a condition of working with me, and if I act as both your agent and your loan officer, I disclose both roles and how I am paid to you in writing. This page is general information, not a commitment to lend, and not tax or legal advice. All loans are subject to credit approval, eligibility, appraisal and property requirements. Tax and property tax rules are summarized and can change, so check IRS.gov and the California State Board of Equalization, and talk with a tax professional or attorney. Equal Housing Opportunity. Equal Housing Lender.