Hi. I recently inherited some money from a home which my mother sold as part of our inheritance (4) children. The problem is that the property is located in Puerto rico and my mother has just informed me that her lawyer said we will not be able to claim the money until this coming year tax return (2006). I do not see how that can be legal. I believed if it is inheritance money and my mother has already paid the property taxes on the home when she sold it why should I and my other brothers have to file this inheritance money with out next tax returns. Is this legal? How can I go about this a smooth and none confrontational court matter? Thanks

AtlantaTaxExpert

You probably will not pay taxes on the value of the house at the time of the inheritance, but rather you will pay taxes (at capital gains rates) on the amount that the house increased in value from the date of the inheritance to the day it was sold.