If I sell an inherited second home, inherited in 2007 and which is abroad, how can it be determined the capital gain on the sale?

[henryleigh]

I do not have good records on the value of the property at the time of inheritance

[Anonymous_ · Accepted solution]

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@henryleigh wrote:
I do not have good records on the value of the property at the time of inheritance

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The optimal mode would be to have an appraisal done by a certified appraiser as of the date of death of the decedent.

[Opus 17]

You will need to make some kind of good faith effort to determine the fair market value on the date of the previous owner's death.  Often, professional appraisers can use historical records to make appraisals for past dates.  You might also use comparable real estate listings from newspapers (perhaps archived online), or by contacting local real estate agents to get their opinions.  

Under the tax code, all your income is assumed to be taxable unless you can prove otherwise.  If you are audited, you will need to have something to show the auditor that you accurately determined the FMV in 2007, otherwise the entire selling price might be deemed taxable.