I hv inherrited some jointly with my brothers & sisters, if that property being sold any time - will the income on my share will be added in the corresponding Fin-yr income and attract IT on the same on my existing slab.

QUOTE," if that property being sold any time - will the income on my share will be added in the corresponding Fin-yr income and attract IT on the same on my existing slab. "--- I assume that you'd have a gain on the sale of th eproperty( I also assume it is capital asset with LTCG). Then as you and your brothers and sisters own the property more than one year, you are subject to LTCG tax rate. This means that in 2010, suppose your personal tax bracket is 10% or 15 %, you owe IRS nothing (because of 0% of LTCG Rate, not 5% in 2010 ,but it will be 10% for both 10 and 15% marginal tax rates in 2011). If your personal marginal tax rate exceeds 15%, then you need to 15% of LTCG tax in 2010 but it will be 20% in 2011. For instance, assume that the portion of the LTCG for you is $30,000 and your tax bracket is 25%( 25%>15%), then you need to pay your LTCG tax of $4,500 to the IRS.
To determine the amount of gain(LTCG), you take your selling price less expenses of the sale (for example realtor's commissions or etc) and deduct from that your adjusted basis in the property.
Your adjusted basis is the fair market value, FMV of the property on the date of death of the person from whom you inherited it plus any capital improvements( do not include repair expenses but just write 'em off in the year in which it is incurred!). No depr. Is allowed because the property is not rental proeperty.

Two comments:

First, the gain on the sale (if any) will be characterized as a long term capital gain regardless of how long the you and your siblings own the property before selling. Inherited prpoerty is always considered to be long term, even if you sell it within a year of inheriting it.

Second, it may be obvious, but you include only your share of the proceeds and your share of the cost basis when reporting the sale on your Schedule D.

QUOTE,". . . Inherited prpoerty is always considered to be long term, even if you sell it within a year of inheriting it."---Right! Exactly. Good deal~~

There is no federal inheritance tax. Also the capital gains calculation as well its treatment will depend upon the year you inherited the property.

QUOTE," There is no federal inheritance tax."---Thanks. Exactly!The federal estate tax is repealed for only one year in 2010 and will return to 2001 rates and rules in 2011.;( the estate tax is repealed in 2010, but then the act "sunsets" in 2011 and the estate tax reappears with an applicable exclusion amount of only $1,000,000 (unless Congress acts before then)).

Guys, please keep in mind that the OP asked about tax consequences of selling inherited property. He did not ask about estate taxes, or whether there is an inheritance tax. So let's not get too far afield from what he originally inquired about.