When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death.
To that figure you add the cost of any improvements and repairs, cost of sale, and othen expenses you have incurred since inheriting and selling the home.
You may owe capital gains tax on the sale of the home.
