If someone wills you a property, you will receive a stepped-up-basis, which equals the market-value at the time of the owner’s death. This means the heirs are only subject to capital gains from that value onward. For example: Uncle Ted left you a duplex he purchased for $150,000 in 1992. It’s worth $800,000 now and you wish to sell. With your new stepped-up-basis, you will only pay capital gains calculated on the fair-market-value (the $800,000), not the $150,000.