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Do you have to pay capital gains tax when a probate house sells in Texas? This is one of the most expensive misunderstandings executors and heirs face. Many people assume capital gains automatically apply after a probate sale — but Texas probate and federal tax rules work very differently than most expect. In this video, I explain: • Whether capital gains tax applies to probate sales • How the step-up in basis actually works • When heirs may owe little to no capital gains • Situations where capital gains can still apply • Common mistakes that trigger unnecessary tax bills • Why timing and valuation matter in Texas probate sales If you’re an executor or heir trying to protect the estate’s equity and avoid surprises from the IRS, this is critical information to understand before selling. If you have questions about a specific probate property or situation in the Austin market, I’m happy to help. Nate Clark Certified Probate Real Estate Specialist Altitude Real Estate Group 512-757-7325 www.altituderealestatetx.com