Investors & landlords

The cost basis of inherited property is generally one of the following:

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
   
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

See Is money received from the sale of inherited property considered taxable income?
 

You can claim a foreign tax credit on income taxes paid. 
 

1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
2. Select Jump to foreign tax credit
3. Complete the screens to claim either the credit or deduction

Transfer taxes are not deductible. You can add any of those taxes to your cost basis.