Hi, genemisk,
What a lovely thing to do for your family.
First, let me say there are various types of taxes. You may have a transfer tax on the property in WI and that is out of scope for us to answer here, however, here is a site that has more info on that. Secondly, if they are paying you in exchange for property, it's not a gift. As an aside, there is a gift tax return required when you are gifting more than $18,000 in 2024 ($36K as a married couple).
Lastly, there is generally no tax to you on either gifts or inheritance when you receive the gift or inheritance (there may be when/if you sell). I am unsure from your question whether you inherited the property which would get a "stepped up" basis or if your parents transferred the property when they were alive (which would be a gift). Gifts typically take on the basis of the owner, but it can get more complicated if the fair market value has decreased to a value lower than the prior owner's basis. This article talks in more detail.
The likely answer is you are not paying income taxes on the transfer of the gift, you may have to consider a gift tax return and consult WI rules for whether you pay a transfer tax. Since I am not sure about some of your question, please do follow up if I haven't answered you adequately!
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Regards,
Karen
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