If your parents bought their house decades ago, selling now could cost the family $300,000 or more in capital gains tax. Holding it until death, on the other hand, can wipe that tax out completely through the stepped-up basis. Both are true, and that’s what makes the decision so hard for many families.
To make it real, I walked through the numbers for a typical Mountain View home. On one road, Mom sells the house and pays capital gains tax on decades of appreciation. On the other, the family holds the house, and when it’s inherited, its tax basis resets to its value at the time of death. For married couples in California, the community property rule can allow the whole house to get that step-up when the first spouse dies, not just half.
But holding isn’t automatically the right answer. Care is expensive. According to the CareScout 2025 Cost of Care Survey, the national median for assisted living is about $6,200 a month, and a private room in a nursing home runs about $10,800 a month. Families need a plan to pay for care and still keep the step-up.
Some shortcuts can backfire, too. Putting the house in the kids’ names, for example, can cost the family the stepped-up basis entirely. Trusts and the estate tax also play a role, and there are rules that may let a homeowner keep the $250,000 home sale exclusion even after moving into a care facility.
The right choice depends on your family’s health, finances, timeline, and goals. Before anyone decides, it helps to ask the right questions and run the real numbers instead of relying on rules of thumb.
I’m not a CPA or attorney, so please confirm your own situation with your tax and legal advisors. But if you’re weighing whether to sell now or hold, I’m happy to help you think it through.
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From the Monterey Bay Wayback Machine
Michael Andretti Wins the IndyCar Season Finale at Laguna Seca (October 18, 1992)
Michael Andretti won the final race of the 1992 IndyCar season at Laguna Seca Raceway near Monterey. Driving for Newman/Haas Racing, he started from the pole and led the most laps on his way to victory. The win wasn’t quite enough for the championship, though. Bobby Rahal finished third in the race and clinched the season title by just four points over Andretti, who finished as the series runner-up.
This Week in Santa Cruz County
Watsonville Hospital to Hold Community Meeting on Possible Maternity Closure
Watsonville Community Hospital will hold a community meeting as hospital leaders consider closing maternity services to cut costs. Tony Nuñez, board president of the Pajaro Valley Health Care District, wrote that the hospital faces an operating deficit of about $85,000 a day and that one service line is losing about $10 million a year. He emphasized that no decisions have been made.
The hospital, which serves families across Santa Cruz County and the Pajaro Valley, temporarily closed its neonatal intensive care unit on July 10 because of a nursing shortage, and leaders said in September they had no plans to reopen it. Hospital leaders have warned the hospital could close by April 2027 if its finances don’t improve.
The meeting is Thursday, October 22, from 5:30 to 6:30 p.m. in the Community Room at Watsonville Civic Plaza, 275 Main Street. Residents can learn more about the hospital’s finances and share their concerns before any decisions are made.
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Date: Wednesday, October 21
Time: 10:30 am – 12:00 pm
Location: Branciforte Branch Library, 230 Gault Street, Santa Cruz
Feeling unsure about your Medicare options? This friendly, free presentation from HICAP’s trained counselors is a welcoming place to get clear, unbiased answers, learn what’s new for the coming year, and leave feeling more confident about the choices ahead.
Boardwalk Chili Cook-Off
Date: Saturday, October 24
Time: 10:00 am – 5:00 pm
Location: Santa Cruz Beach Boardwalk, 400 Beach Street, Santa Cruz
Follow the aroma of simmering chili to the Santa Cruz Beach Boardwalk, where professional and amateur cooks go spoon to spoon for the title of Best Chili. Wander from booth to booth, taste your way through bold recipes, and cast your vote for the People’s Choice, all while supporting local kids through the Youth Resource Bank of Santa Cruz County.
Fall Gathering & Pie Baking Contest
Date: Saturday, October 24
Time: 1:00 pm – 4:00 pm
Location: Live Oak Artists Community, 1615-D 17th Avenue, Santa Cruz
Celebrate the season at this cozy community gathering filled with live music, handmade art, and plenty of homemade pie. Sample a few slices, cheer on local bakers, and help choose the People’s Choice winners, all while supporting a new agricultural mural for the Grange hall.
An Evening of Neo Soul: Let The Caged Bird Sing IV
Date: Sunday, October 25
Time: 5:00 pm – 7:00 pm
Location: Kuumbwa Jazz Center, 320 Cedar Street, Santa Cruz
Spend a soulful Sunday evening at Kuumbwa Jazz as the beloved Let The Caged Bird Sing concert returns for its fourth year. Powerful voices and talented musicians bring songs by artists like Lauryn Hill and Jill Scott to life in a moving set centered on empowerment, healing, and joy.
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Senior Friendly Homes in Silicon Valley South
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