Before you decide anything, get a date-of-death appraisal. That one document usually matters more than the sell-or-keep decision, and it gets harder to obtain every month that passes. Here is why, and it is the thing nobody in this thread mentioned. Inherited property generally receives a stepped-up basis. Your cost basis is reset to the fair market value as of the date of death, not what the person who left it to you originally paid. So if they bought the house in 1978 for $40,000 and it was worth $400,000 the day they died, your basis is generally $400,000. Which means if you sell it now for roughly $400,000, your taxable gain is close to nothing. Not deferred. Not reduced. Close to zero. Most people who inherit property assume they are facing a large capital gains bill and make decisions around avoiding it. Frequently that bill does not exist. Also useful: gain or loss on inherited property is generally treated as long-term regardless of how briefly you held it. The date-of-death appraisal is what proves that number. Get it now, retroactively if necessary, while records and comparable sales from that period are still accessible. People who skip it end up years later unable to document their basis, which is an expensive kind of paperwork problem. Now the actual decision, and it depends on two things: whether you inherited alone, and what you want. If you inherited with siblings or other heirs, settle the decision early and in writing. Co-owned inherited property is where families break. Everyone has different finances, different sentiment and different timelines, and the person who wants to keep it is rarely the person paying the taxes and the roof. Understand also that if you cannot agree, any co-owner can generally force a sale through a partition action. Knowing that tends to make the conversation more productive, because everyone realizes the deadlock has an ugly default. If you are deciding what to do with it: Selling is the cleanest, and the step-up makes it tax-efficient in a way it will never be again. The longer you hold, the more gain accumulates above your stepped-up basis. Renting it turns it into an investment property. You start depreciation from the stepped-up basis, which is a real benefit, but that depreciation gets recaptured when you eventually sell. And you are taking a job, not just an asset. Keeping it to live in is fine if you want to live there. Just be honest about whether that is what you want or whether it is grief making the decision. There is no wrong answer, but they are different decisions. Three practical items. Find out whether the property still carries a mortgage. Inheriting the house does not necessarily extinguish the loan, and there are protections around transfers to family members on death that an attorney can walk you through. Do not assume the primary residence exclusion is available to you. That generally requires your own ownership and use as a principal residence, so an heir who never lived there usually cannot use it. The step-up is the tool here, not Section 121. And ask a CPA about Pennsylvania specifically, because Pennsylvania is one of the states with an inheritance tax and the treatment depends on your relationship to the person who died. That is a real number and it is state-specific, so get it from someone licensed there rather than from a general answer. I am a real estate professional, not a CPA or an attorney. Sorry for your loss, and get that appraisal ordered this month regardless of what you decide about the property itself. My name is Zoltan Peresztegi and I work in Los Angeles, the South Bay and on the Palos Verdes Peninsula, where I handle a fair number of estate sales, so this is familiar ground even though I am not your Pennsylvania agent. If you want an introduction to an agent in Westmoreland County who works with estates and knows appraisers who do retroactive date-of-death valuations, message me and I will make one. Zoltan


