“A stepped-up basis” (Means at the fair market value at the time of death) allows heirs the opportunity to only pay capital gains tax on the difference between the value when inherited and the sale price when the property is sold. This is the one “sure way” of gaining equity and not getting taxed on the asset. Under Section 121 of the Internal Revenue Code, if an investor owns a property and retains the property for at least 60 months and 24 of these months were used as an investor’s primary residence, if single, the investor is entitled to a $250,000 exclusion on the sale of the property. This takes effect only if the investor has not taken an exclusion within the past 24 months. If married and filing jointly, the married couple is designated a $500,000 exclusion.