I inherited property in 2016 and sold the property in 2016. The property was assessed at $200,000 and sold for $130,000. My parents died in 1999 and the estate was settled in 2016. I had been paying property taxes since 1999. In 1999 the property was assessed at $100,000. Do I owe Capital Gains Tax?
If the property was used as a rental (or a business), depreciation will lower your Basis, creating a larger taxable gain.