Investors & landlords

agree with @Critter 

 

from what you described there are no 'inheritance' taxes..... your cost basis to determine your profit loss on this property is based on what it was worth at date for your MIL's death.  That cost basis may be complicated because you purchased your BIL's interest and that wasn't an arm's length transaction - not a crisis, but certainly something a local accountant can ensure you don't overpay taxes on.