Inherited property gets a stepped-up basis to fair market value at death.

Evidence

If that happened, his children would inherit $100,000 of property tax-free—and could sell it for full value, the very next day, without paying any federal income taxes. Why? Because for inherited property, the basis rule is fair market value at death. If they sell for exactly the fair market value (what a typical buyer is willing to pay), the entire amount is not considered a taxable gain—and they keep all of that wealth. — Dorothy A. Brown, The Whiteness of Wealth, 474

Categorization

• XREF: The step-up-in-basis mechanism connects to the reader’s broader structural-racism framework and to the ‘little things/grafting’ worldbuilding where infrastructure quietly favors incumbents.