What is tax consequentce on sale of land that was deeded to children before death of parents (now deceased)

You will have to pay capital gains taxes on the difference between the proceeds you realize (sales price less cost of sale) and your cost bais. This assumes that you have not used the property as your principal residence, and that it has not been a rental property. Since the property was gifted to the children, the cost basis used in determining capital gains when the children later sell the property is based on either (a) the original cost basis for the parents plus all capital improvements made since they origially purchased the property, or (b) the fair market value (FMV) at the time of the gift plus capital improvemengts made since then. The determination of whether to use (a) or (b) is based on whether the FMV was higher or lower then the parents' original cost basis, and also whether this results in a gain or loss. Usually you have to use (a), but you should review the section titled "Home received as gift" in the following IRS web site to make sure: Publication 523 (2009), Selling Your Home (http://www.irs.gov/publications/p523/ar02.html#en_US_publink1000200659)