Estate Law Questions? Ask an Estate Lawyer.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
Yes she may owe capital gains on the value from the time father deceased until time she sells it.There is no inheritance tax but she held the property here for a period of time.If there is a gain here for those five years she may owe capital gains taxes and they need to be reported the year of sale.This is the basis of the sale(date father deceased).Each year there was a sale she likely owed capital gains.There is an exclusion available if she lives in it 2 out the last 5 years.
She will need to amend her returns for any years she had capital gains and did not report them.She needs to do this before they audit her.She likely owes taxes on at least one of these properties depending on where she was living.
I appreciate the chance to help you tonight.Please let me know if you have more follow up.Thanks again.