If the taxpayer owns property, and sells it, their gain is the difference between their basis and the selling price. If the property does not get a stepped up basis (which may be the case for certain trusts), then the buyout is a taxable capital gain. It doesn't matter than the sale was forced.
However, most inherited property should get a stepped up basis. The taxpayer should have an attorney at this point, and if the attorney doesn't specialize in the tax issues of the transaction, the taxpayer should also hire an accountant to advise on the gains issue.
