Written by the Inherited Home Buyers editorial team· Reviewed by Editorial Tax Reviewer (Placeholder) (CPA)· Last updated 2026-05-25
Where is this rule written?
IRS Publication 559 and Section 1223(9) of the Internal Revenue Code. Whether you sell on day 30 or day 3,000, the holding period is long-term.
Why does it matter?
Short-term gains (held one year or less) are taxed at ordinary-income rates up to 37% federal. Long-term gains top out at 20% federal, and many heirs fall in the 0% or 15% bracket. The difference can be tens of thousands of dollars on a typical inherited-house sale.
Sources
Frequently asked questions
Always long-term. IRC §1223(9) and IRS Publication 559 make this automatic, regardless of actual holding time.
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