I am a US citizen living in NJ. I inherited a portion of a property in Germany (family that lives in Germany inherited the rest). That property was sold recently and my portion of the funds from the sale were electronically transferred to my bank here in the US. What kind of taxes will I owe here in the US for this money? How do I file it?

First, there is no federal inheritance tax in the US, so you have nothing to report on that score. However, NJ does have an inheritance tax, whiuch may be as much as 15% of the value of your inheritance (depending on your relationship to the decedant) - see Estate Taxes by State - Understanding New Jersey Inheritance Taxes I don't know whether Germany has an inheritance on property - you'll have to contact someone over there to find out.

As for the sale of the property - you report any gain on your tax return, form 1040 schedule D. Your gain is the difference between your portion of the sales proceeds and your cost basis. Your cost basis is equal to the fair market value of your portion of the property as of the data of death of the decedant. The executor of the estate should be able to tell what that figure is. Unfortunately, if the sale resulted in a loss you can not claim that loss, since this property was neither a home for you nor an investment property - consequently it's considered personal property and you can't take a loss on it.