Capital Gains Taxes on inherited property

[liz022376]

What is the name of your state (only U.S. law)? Missouri

My husband received a property from his family in an inheritance and paid taxes at that time for the market value of the property. We are selling the property now (21 years later) and aren't sure what we'll owe taxes on. Will it be the full amount we sell it for or the difference of sale price/value at time of inheritance?

Also, we have a lien on the property, will that affect the tax at all?

 

[davew128]

Difference between sales price and inherited value. Lien is irrelevant.

 

[FlyingRon]

The capital gain is the sales price less the basis.

The basis on inherited property is most likely the value the property had at the time of the person he inherited from's death.
It is reduced by any depreciation deduction taken (or that you should have taken). It is increased by any capital improvements you made.