How to Sell an Inherited House in NYC (Probate, Taxes & Options)

You can sell an inherited house in New York once the estate has authority to sell, and thanks to the stepped-up basis, most heirs owe little or no capital gains tax. You also do not have to renovate it or clean it out. Here is how it works.

What do I need before I can sell an inherited house?

The estate needs legal authority to sell. With a will, the executor typically gets letters testamentary from Surrogate’s Court; without one, the court appoints an administrator. On Staten Island that is the Richmond County Surrogate’s Court. The home can often be listed while the process finishes.

Do I pay tax when I sell an inherited house?

Usually very little. You receive a stepped-up basis, meaning the home’s value resets to what it was worth on the date you inherited it. If it is worth $700,000 and you sell for $700,000, your taxable gain is close to zero. You are not taxed on decades of appreciation you never saw.

Do I have to fix or clean out the house?

No. You can sell it exactly as it sits, keep only what matters to you, and let the buyer handle the rest. Many heirs sell as-is, and some sell off-market to an investor for privacy and speed.