@fpc wrote:
Since the property was inherited, wouldn't that mean the cost basis becomes the value of the property at the time of the owner's death. So there wouldn't be any capital gain?
Yes, if included in the decedent's gross estate, the cost basis would be stepped up to fair market value as of the date of death of the decedent.
In many instances, that results in little or no gain upon a sale shortly after the decedent's death.
