I am not a tax expert, and I don’t play one on TV, but I think that if there is an inheritance tax the inheritance tax is paid by the estate giving the inheritance to you, not by you. If the estate is below a certain amount there is no inheritance tax.
Ah! That makes sense! I feel better.
the inheritance tax is paid by the estate giving the inheritance to you, not by you.
yes that is true, but if it is real estate....did you sell it?
You get the adjusted basis of the value of the property as of the date of death. Have a RE professional give you a market price as of the date of death. That is your new stepped up basis that you inherit. If you sell the RE within a year then you will owe short term cap gains if there are any. If you sell it after a year you get long term tax treatment on any gain.
ymmv