Journal · selling # Taxes When Selling an Inherited House in Pasadena An inherited Pasadena house raises a basis question and a property-tax question. A CPA applies both. Sidney does not buy the house and does not give tax advice. Published November 10, 2026 · Updated November 10, 2026 · 7 min By Sidney Manzo, CA DRE #01108914 · RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193 [Journal](https://realestateworks.com/journal) · selling ## Taxes when selling an inherited house in Pasadena Sidney Manzo, CA DRE #01108914, with Two different tax systems show up when heirs talk about selling a Pasadena house they inherited. One is federal income tax on gain. The other is California property tax, including Proposition 19. This note names the public pages and then sends the file to a CPA. It is general information, not legal or tax advice, and it is not an appraisal. Sidney does not buy the house. A home value review is his look at one address for planning a sale. It is not an instant or automated valuation, and it is not a date-of-death appraisal. The income-tax note for a long-held home, including the sale-of-home exclusion, is [Capital Gains Tax on Selling a House in California](https://realestateworks.com/journal/capital-gains-selling-long-held-home-california). Do not use this page as a second copy of that one. The property-tax note is [How Prop 19 affects selling or inheriting a home](https://realestateworks.com/journal/how-does-prop-19-affect-selling-or-inheriting-a-home). ## Basis, in the IRS's words The IRS [gifts and inheritances FAQ](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances), read November 10, 2026, says money from the sale of inherited property is generally included in gross income when you decide whether you must file, and that you report the sale on Schedule D and Form 8949 when a filing is required. To know whether the sale is taxable, the FAQ says you first determine basis. It says the basis of property inherited from a decedent is generally the fair market value on the date of death, whether or not an estate tax return is filed, or the value on the alternate valuation date only if the executor files Form 706 and elects that date. The same FAQ says that if you or your spouse gave the property to the decedent within one year before death, you should see Publication 551. It also describes a consistency rule when an executor provides Schedule A to Form 8971. Those sentences are the IRS's. A CPA applies them to this house. This page does not compute gain, does not state a Pasadena sale price, and does not say the exclusion for a home you lived in applies to an heir. That exclusion is discussed on the capital-gains note linked above, still as general information. ## Proposition 19 is the property-tax base The [State Board of Equalization](https://www.boe.ca.gov/prop19/) describes Proposition 19 as the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, approved November 3, 2020. Its parent-child chart says the current exclusion is for a family home or farm that is the principal residence of the transferor and the transferee, with a value limit, and that the exclusion for other real property was eliminated. The chart says a homeowners' exemption claim is filed within one year of the transfer. Implementing statute on that chart is Revenue and Taxation Code section 63.2, effective February 16, 2021. The Board's phone for the Property Tax Department is 1-916-274-3350. That is assessed value for the property-tax bill. It is not the income-tax basis in the IRS FAQ. Keeping the Pasadena house as a child's residence and selling it are different files. The county assessor and a CPA say which chart row, if any, fits. Nothing here says a base-year value will transfer. ## What a broker can add A home value review can give the attorney and the CPA a broker's opinion of what the house might bring, separate from a date-of-death appraisal the estate may already have. The two numbers answer different questions. [Request a home value review](https://realestateworks.com/valuation?city=pasadena). [Book a seller consultation](https://realestateworks.com/book?kind=consultation&from=%2Fjournal%2Ftaxes-when-selling-an-inherited-house-in-pasadena&city=Pasadena¬es=Source%3A%20%2Fjournal%2Ftaxes-when-selling-an-inherited-house-in-pasadena.%20Lead%20type%3A%20seller.%20Situation%3A%20inherited%20home.). The local inherited-home page is [selling an inherited house in Pasadena](https://realestateworks.com/cities/pasadena/inherited-property). Disclosure steps, including the presale certificate, are on [What to Disclose When Selling a House in Pasadena](https://realestateworks.com/journal/what-to-disclose-when-selling-a-house-in-pasadena). Authority to sign is a legal and title question, confirmed before anyone lists. ## Questions homeowners ask next **Is this the capital-gains note for a long-held California home?** No. That note is Capital Gains Tax on Selling a House in California. This page is only the inherited-house question for a Pasadena property: IRS basis language, then Proposition 19 as property tax. A CPA applies both. This is not tax advice. **What does the IRS say basis of inherited property generally is?** The gifts and inheritances FAQ says basis is generally fair market value on the date of death, or on the alternate valuation date only if the executor files Form 706 and elects that date. A CPA applies the FAQ, including the one-year gift rule and any Form 8971 consistency rule, to the file. **Does Proposition 19 calculate income tax on the sale?** No. The Board of Equalization page treats Proposition 19 as the property-tax base, including a narrowed parent-child exclusion for a family home. Income tax on gain is the IRS question. This page does not compute either figure. **Where do I read the parent-child rules?** Start at boe.ca.gov/prop19 and the Prop 19 note on this site, then the assessor or a CPA. The Board lists 1-916-274-3350 for its Property Tax Department. Sidney does not apply the exclusion. **Can a home value review replace the date-of-death value?** No. A home value review is a broker's opinion for planning a sale. It is not an appraisal, not an automated valuation, and not the figure an estate uses as date-of-death fair market value. The executor and the CPA use the records they have. **Does Sidney buy an inherited Pasadena house?** No. Sidney Manzo, CA DRE #01108914, with, does not buy houses. He can review the property after the person who may sign is identified. A consultation does not create a listing. ## Sources - [irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances) - [boe.ca.gov/prop19/](https://www.boe.ca.gov/prop19/) Inherited a house in Pasadena? Sidney can review the property and your options. [Get help with an inherited home](https://realestateworks.com/cities/pasadena/inherited-property) ## Who can help me sell in Pasadena? Sidney Manzo, your local agent in Pasadena, can prepare your home value review, price the home and guide the sale. Sidney Manzo, CA DRE #01108914, licensed in California; 155+ closed sales; RE/MAX Hall of Fame; member of the Pasadena Foothills Association of REALTORS® (PFAR) and C.A.R. [About Sidney Manzo](https://realestateworks.com/about) · [Get help with an inherited home](https://realestateworks.com/cities/pasadena/inherited-property). RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193 Published November 10, 2026 · Updated November 10, 2026 This note is not an appraisal and not legal, tax, or foreclosure advice. Nothing on this page creates a listing agreement. Equal Housing Opportunity. ## Also in the catalog - [Sell a Home in Pasadena](https://realestateworks.com/cities/pasadena) - [Sell an Inherited House in Pasadena](https://realestateworks.com/cities/pasadena/inherited-property) - [Property-Specific Home Value Review](https://realestateworks.com/valuation) - [Book a Seller Consultation](https://realestateworks.com/book?kind=seller-consultation) - [What to Disclose When Selling a House in Pasadena](https://realestateworks.com/journal/what-to-disclose-when-selling-a-house-in-pasadena) Pasadena sellers meet the state transfer and hazard forms and the City's presale certificate. This note is general information. Sidney does not buy the house. - [Cash Offer vs. Listing Agent in Pasadena](https://realestateworks.com/journal/cash-offer-vs-listing-agent-pasadena) People look up how to sell a house fast in Pasadena and how a cash offer compares with a Realtor. Sidney reviews offers you already have. He does not buy the house. - [Who should I hire to sell an inherited house in Pasadena?](https://realestateworks.com/journal/who-should-i-hire-to-sell-an-inherited-house-in-pasadena) You need a small team where each person has one job: the estate's attorney and a CPA handle the legal and financial side, and a listing agent handles the house, from pricing and cleanout to marketing and escrow. The executor or other person in charge makes the decisions, and licensed vendors do the hands-on work. --- Sidney Manzo, CA DRE #01108914 · RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193 · (626) 296-2900 Source page: https://realestateworks.com/journal/taxes-when-selling-an-inherited-house-in-pasadena