I inherited property in 2001 that I sold in 2009. I am not sure how it should be taxed. The property was trust set up by my Grandfater, it was in mine and my Uncle's name and ownership transferred to us on his death. We then split the property between us and had our own separate deeds made. I just do not know the best way to handle the tax treatment (I am an accountant and have prepared taxes in the past) and need some advice.

Thank you for your time!

You report the sale as a capital gain on Schedule D, and for cost basis use the fair market value of your piece of the property as of your grandfather's date of death. The executor of his estate should be able to tell you what the FMV of the full property was - particularly if an inventory of his assets was done for estate tax purposes. If you are confident that you and your uncle split the property so that each got half the value, then you can use 50% of the FMV as your cost basis.