Yes, the basis (the tax concept meaning "what you are credited with having paid") on most items is "stepped up" to the fair market value upon inheritance.
This step up is subject to estate tax (if the estate is over a certain size), but not capital gains tax.
This step up is subject to estate tax (if the estate is over a certain size), but not capital gains tax.
https://www.irs.gov/help-resources/tools-faqs/faqs-for-indiv...