IIRC, it is common for houses to be inherited after the owner’s death, and the tax basis is inherited with the house. As such (at least in my area on the Centr

IIRC, it is common for houses to be inherited after the owner’s death, and the tax basis is inherited with the house. As such (at least in my area on the Central Coast), many of these houses just become (high) market rate rentals with no change in tax status. I could be wrong about this, but I know some people who own some properties in the area who tell me that’s the case.