Hal_Al
Level 15

Deductions & credits

Your cost basis for calculating capital gains is the Fair market value (FMV) on the date of death of the person she inherited it from (plus any improvements, but not repairs, that were made since inheriting it).

 

If the property was used as rental property, anytime in last nine years, you will also have "depreciation recapture" (a special class of capital gain taxed as ordinary income, but not more than 25%).