conversation: User (AlbinoBidoof): "I'm new to this sub so I apologise if this is the wrong place to ask questions. My husband's father passed away when my husband was 19, he didn't leave him much but he did inherit a piece of Oregon coastal property. Because of my husband's age the family decided the best plan of action was to sell the property to a neighboring business for roughly $55,000.00, in a transaction the entailed my husband holding the deed while they made monthly payments, all coordinated through an escrow company. Recently we received notice that the buyer would like to pay the remaining principal of $28,000.00 in full. My question is what will taxation of that payment look like?"
  Self: "*This is not tax advice - for informational purposes only.* Here. we. go. When you inherit a piece of property, the fair market value at the time of death becomes your tax basis.  Likely there would be no tax effect if it sold immediately, as the basis in the property and the sale price would both be the fair market value at the time - and there would be no capital gain."
  User (AlbinoBidoof): "Thank you for the response! I hope this wasn't a stupid question, I'm just fairly ignorant in regards to tax law. My husband was under the impression that we would need to reinvest the money quickly to avoid a large tax, and started talking about buying a house sooner than we had planned. The housing market is not presently in favor of buyers in our area so I don't necessarily want to do that if it's not advantageous. "
  Self: "Not a stupid question, I'm a CPA so i had to stare at a book until I knew this kind of stuff. If any tax was due, it would have been due when the sale occurred. Good luck saving for your house!"
  