> How does that work? If I buy a house for $100K, then sell it 30 years later for $1M, am I really going to get taxed on the $900K gain? You get taxed on a $40

> How does that work? If I buy a house for $100K, then sell it 30 years later for $1M, am I really going to get taxed on the $900K gain? You get taxed on a $400k gain. The first $500k of gain (in your primary residence for 3 years) is ignored. In fact, I know (casually) someone who moved in 2021 just to lock in their appreciation at the 500k level. > And what tax benefit if it's inherited? Does inheriting reset the cost basis so there will never be taxes due on that $900K gain or something? Yes. When you inherit property (real estate, stocks, art, etc.) the basis resets to the present fair market value (easy to determine in case of a publicly traded stock, probably requires an appraiser for real estate if you don't sell it quickly.)