I’m selling my property in Bulgaria which was inherited from my father in 2004 ...... However my father died last year
The property can only be inherited "AFTER" the original owner has passed away. Therefore you did not inherit the property at all. Instead, it was a gift, given to you by your father in 2004 while he was still alive. So your cost basis on the property is what you father paid for it originally, plus the cost of any property improvements your father paid for "AFTER" his initial purchase of the property.
Therefore, you will pay taxes on any amount you receive, in excess of the cost basis. it does not matter what you do with the proceeds from the sale either. You will still pay taxes on it.
