@scocpm , on going through your post, what I don't see is when did your the decedent pass ( I am sorry for your loss, really ), when did you sell the property etc. ? What state are you in ? When did your father pass and what was the valuation of the ;prop. then ?
Generally what happens is that ( depending on the state ) either there is a step up of the half the prop on passing of one parent, and then another step up on the passing of the other parent ( and of course depending on the title holding verbiage/ type between the decedents). So your basis in the prop. would usually be the stepped up value ( i.e. FMV ) --- you need to tell us more of the situation and state .
So the gain that you are taxed on is based on length of holding, your basis and the selling price ( LESS sales expenses , such as commission, prep for sales expenses, transfer taxes, title work etc. ).
Does this make sense ?
pk
