My brothers and sisters and I acquired my moms property on a Life Estate in 1998. She passed away in 2008 and we are now selling the property to one of my brothers. We are selling the property to him for what it was worth in 1998. Which is 120,000. Will we have to pay any capital gains tax on this? We are each receiving $20,000.

The capital gain tax on this transaction would be 15% of (what you receive for it less the fair market value at the time you received it).

However it would question whether the FMV of your remainder interest was in fact $120 K. If the FMV of the fee simple was $120 K, the value of just the remainder interest would have been something less.

Do you have some idea what the FMV of the life estate (your mother's right to occupy the property for the remainder of her life) would have been in 1998? In other words, her life expectancy in years multiplied by the fair rental value, per year? That would be the capital gain.