Hello and good tax planning questions. Typically inheritences are not taxable. However, the earnings from inhertences are taxable. For example, if you inherit the property, then subsequently sale the property then the gains will be taxable. The gains will be calculated based on sale proceeds less basis. There are two typical ways that are usually used. One is the FMV on the date of the decendent's death or FMV of the property on alternative valuation date. I also linked an IRS article below.
IRS link
