My mom had passed away in 2011 and my brother and I inherited property which neither of us lived in and we sold it last year. It was sold for $60,000 and it was valued at around $100,00 at the time of her death. Will we have to owe taxes for each of our share of the proceeds. I live in ca and the property was in mississippi. Thanks for the help

Your basis in the property then would be the $10k value at your mom's death. The basis for determining gain or loss on inherited property is the property's fair market value on the date of the decedent's death. Fair market value is the price that property would sell for on the open market.so you need to pay tax on your ltcg of $25K(your portion of 50% I assume, $30k-$5K).aslongas your marginal tax rate is 15 or lower, then no LTCG tax if is higher than 15%, then you need to pay 15% on $25K to the IRS. Inherited property is always considered to have a long-term holding period, so you would qualify for the preferential tax rate of0~ 15%. Your maximum tax then would be $3.75K; it could be lower if you have no or little income.you need to check the Mississippi govt to see f you need to pay tax to the govt ( I guess you do not need to pay inheritance/estate taxes to Mississippi/ CA state

Since the property was sold for less than what the market value was $60,000 and market value $100,000, I won't have to pay taxes on my share of the proceeds?

youmean aslongas its basis>FMV(selling price), then you'd take lTCL then no Capital gin tax.