Inherit property then sell it Income taxes?

If you sell the property for more than it was worth on the date of death (or alternate valuation date selected by the executor of the estate), the difference is subject to taxes and most likely a capital gain.

Conversely, if you sell it for less and you did not use the property for personal purposes, you can claim a capital loss.

For this reason, it is essential that you have records establishing the value of the property on the date of death (or alternate valuation date). Contact the executor or have an appraisal/valuation done yourself if none is available. If you don't get this information soon after the death, you may find it difficult or very expensive to get later and may find yourself paying unnecessary taxes or fees.