Virginia does not levy inheritance or estate taxes. When you sell an inherited home in Virginia Beach, federal capital gains tax may apply. The IRS applies a step-up basis, resetting the property’s value to its fair market value at the time of inheritance. For example, if the Virginia Beach home was valued at $300,000 when you inherited it and you sell for $320,000, you only owe capital gains tax on the $20,000 gain.

You don’t pay taxes simply for inheriting a home. However, once you own it, you’re responsible for Virginia Beach real estate taxes (the city’s current property tax rate is $1.03 per $100 of assessed value). If you sell the home, capital gains tax may apply. If probate is required, you may also face filing fees through the Virginia Beach Circuit Court.

Homeowners sometimes reduce or defer capital gains taxes by:

• Selling shortly after probate closes (minimizing the difference between inherited value and sale price).

• Converting the property into a primary residence (living there at least 2 years may qualify for the $250k/$500k exclusion).

• Turning the home into a rental and using a 1031 exchange for another investment property.

Because every situation is unique, it’s wise to consult a CPA experienced in Virginia real estate.

One heir living in the property does not gain automatic ownership. If co-heirs can’t agree, the others may file a partition action in the Virginia Beach Circuit Court to force a sale or require a buyout. Mediation is often recommended first since it can save time and costs.

If several heirs inherit the property, they must agree on what to do. Options include:

• One heir buying out the others.

• Selling the home and splitting the proceeds.

• Petitioning the Virginia Beach Circuit Court for a forced sale if no agreement is reached.

Virginia law doesn’t set a strict deadline. However, the property can’t be sold until probate is complete, which often takes 6–12 months in Virginia Beach Circuit Court. After probate, you can keep or sell the property at any time—but you’ll continue to owe Virginia Beach property taxes, insurance, and upkeep costs.

1. Get the home’s appraised value at the time of inheritance (step-up basis).

2. Subtract that value from the selling price.

3. Apply the federal capital gains rate (0%, 15%, or 20%, depending on your income).
   

Example: Inherited at $250,000, sold at $300,000 → $50,000 taxable gain.

• Federal capital gains tax (if sold above the step-up basis).

• Virginia Beach real estate tax: $1.03 per $100 of assessed value.

• Probate court filing fees if the estate is probated in Virginia Beach Circuit Court.
  

Virginia imposes no inheritance or estate tax, making the process simpler compared to many other states.