[awjhwpoint]

I posted earlier but can not find it ,anyway My Mother died in Dec and left me property that was in a life estate for her. What kind of tax implications can I expect. I talked to an attorney and CPA that said I would owe taxes on all of it which I am doubtful but want your opinion. I am getting an apprasial and think that would be the stepeed up basis in the property. Please help me if you can. Thak you in advance The attorney told me that I did not inherit it that it was already mine. Any help would be appreciated

[MukatA]

There is no federal tax on inheritances. Most of the states do not tax inheritances. When you inherit a property, you cost basis is the FMV at the date of death. When you sell it, you have long term capital gain.

Read: Your U.S. Tax Return: Tax on Inheritances

[Five Rings]

Here, from Wikipedia, is a definition of life estate:
"In the United States, a life estate is typically used as a tool of an estate planning. A life estate can avoid probate and ensure that an intended heir will receive title to real property. For example, Al owns a home and desire that Bill inherit it after Al's death. Al can effectuate that desire by transferring title to the home to Bill and retaining a life estate in the home. Al keeps a life estate and Bill receives a vested fee simple remainder. As soon as Al dies, the life estate interest merges with Bill's remainder, and Bill has a fee simple title. Such transfer of interests make unnecessary the use of a will and allows the asset to not go through probate. The disadvantage to the grantor, however, is that the grant to the remainderman is irrevocable. "Beneficiary deeds" have been statutorily created in some states to address this issue."

In European law this is accomplished by the concept of " use and fruit" of a property that has already been turned over to heirs.
Now, since the life estate ended when your mother passed, you have the property which, as MukatA points out, is free of income tax to you and takes on the basis of the fair markey value on her date of death