My father, divorced/single, passed away on November 15, 2009 (resident of Puerto Rico). My brother (resident of FL), sister (resident of PR) and I (resident of NJ) were left to inherit his assets. He left behind a CD in the amount of $100,000 which matures on May 4, 2009. Another CD of $86,000 which matures on December 1, 2009. A paid off single family home in PR with an approximate value of $200-$210k and a recently purchased new construction apartment in PR with a mortgage of around $185,250 and a value of around $195,000.
My brother and I, living in the US, are concerned that we will be required to pay taxes on our CD inheritance (1/3 each) even though my father has already paid taxes for that money. He does not owe any backed taxes either.
The properties, as of now, we'll keep as rentals.
Can you please provide some guidance with regards to what my brother and I should expect tax-wise with regards to the CD's?
Also, if we choose to sell the properties, more than likely the one that's paid off, what should we expect? We'll more than likely pay off the apartment with the earning of the sale.
Thank you for your assistance,