My dad sold property and held a lien on it for the payments. He passed away and I have inherited the monthly payments from the owner now. Do I have to pay any kind of taxes on this money? I live in Texas.

If the money being paid back includes an interest payment then you have to include that on your yearly income for tax purposes. But the amount on principle is yours to keep.

Ok, so the property is in the owner's name and she pays property taxes etc... she just makes the monthly payments to me now that dad has passed away. The payment does include interest. Your saying I need to report the interest part of the payment on my taxes correct?

Ok, so the property is in the owner's name and she pays property taxes etc... she just makes the monthly payments to me now that dad has passed away. The payment does include interest. Your saying I need to report the interest part of the payment on my taxes correct?

Yes and also you should send her a interest statement so if she is allowed she can deduct it from her taxes too.

The value of the asset was already determined when it got transferred to you (the principle). So the only thing left for taxation on a yearly basis is the interest.