I Inherited a House Worth $400,000. An Appraisal Could Save Roughly $7,500 in Capital Gains Tax.

Inheriting a house can give you a step-up in basis, potentially reducing capital gains tax when you sell it. To support that tax treatment, you generally need documentation showing what the home was worth when the previous owner died. On a $400,000 home, a timely appraisal could save you $7,500 in federal capital gains tax.