Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
If your mother leaves the home to you and your brother then you will be taxed on any gain but your gains would be the difference in sale proice (less cost of sell) and your basis (fair market value on your mother's date of death).
Because of this step up in value and a sale that is close after inheriting, there is not always a gain to pay tax on.
States do have tax to pay but each is different and many just start with Federal income and tax on a regular rate.
You would not pay an inheritance tax. One because of the dollar amount and two because the property is not subject to that.
If your mother sells and she has been using as her main residence she may have exclusion that would apply. If she has not then she would be taxed on her gain.In PR earnings of nonresident individuals from the sale of a property are subject to a withholding tax of 25%, which is levied on the gross selling price. If you held for longer then 6 months then it drops to 20%.
It may be more beneficial for your mother to dispose of the property if she no longer wants it.
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Your state would not have an inheritance tax on the property because the property is not in your state (and I am assuming your mother is not resident there either).
Most states did away with inheritance tax
the estate pays any inheritance tax.
Probably, the 20% is withheld in PR on the total sells price if you are not a resident so she would most likely be better to sale
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