Inheritance tax is a card in Monopoly . . . the Federal Estate Tax is a tax on the estate, not the beneficiary.

However, in theory, your wife will have to deal with capital gains, since her acquisition basis (cost) was zero. There are numerous exemptions and reductions of the CGT, so check with a tax expert.

It usually easier if the estate sells the property and you just inherit the money.

Capital Gains taxes YES.
But her cost basis is the value on the day her father died, that is the date 'she' acquired it.
Get an appraisal now to help establish that.
Talk to a tax accountant or attorney.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

Inheritance tax is a card in Monopoly . . . the Federal Estate Tax is a tax on the estate, not the beneficiary.

However, in theory, your wife will have to deal with capital gains, since her acquisition basis (cost) was zero. There are numerous exemptions and reductions of the CGT, so check with a tax expert.
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None of the above post has any bearing whatsoever on your Q, other than "check with a tax expert."

There is NO inheritance tax due to the IRS on a home. Period.

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'06 E320 CDI
'17 Corvette Stingray Vert

Thanks for all of your help. Our account will be back from vacation on Monday,i will find out then.