(This is Part 3 of a five-part series. See Part 1, Part 2, Part 4 and Part 5.) Armed with your estimated "adjusted sales price" from which you subtract your "adjusted cost basis" to arrive at the estimated long-term capital gain if you sell the property, it's time to consider how to avoid paying capital gain tax on that sale profit. Purchase Bob Bruss reports online. METHOD #1 – IF YOU INHERITED PROPERTY, DON'T FORGET YOUR "STEPPED-UP BASIS." This is a major tax benefit of inheriting property, which most homeowners and investors don't fully understand. Obviously, the higher a homeowner's or investor's adjusted cost basis in their real estate, the lower the potential capital gain when that asset is sold. "Stepped-up basis," available only to heirs who inherited real estate and ot...
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