Inheriting a house is a big deal — but the last thing you want is a surprise tax bill when you go to sell it. The good news is there are several legitimate ways to reduce or completely avoid capital gains taxes on an inherited property. Here's what you need to know. First — Understand the Step-Up in Basis This is the biggest tax break you get as an heir. When you inherit a home, your cost basis is automatically reset to the market value of the home on the date the owner passe