CalculateRealEstateROI

Wealth Building

How does real estate build generational wealth?

Long hold + leverage + depreciation + step-up basis at death = tax-free transfer to heirs.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Long hold + leverage + depreciation + step-up basis at death = tax-free transfer to heirs.

Expanded explanation

Hold properties until death. Refinance instead of selling. Heirs inherit at stepped-up basis, eliminating deferred gain and recapture. Strategy widely used by family real-estate dynasties.

Examples

  • $5M portfolio with $2M basis steps to $5M at death — zero tax.

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