If you inherit a property, your cost basis is the fair market value at the date of death or any alternative date selected by the estate representative. So when you sell the property, you may have a gain or loss depending upon your sale price is more than your cost basis or less than your loss basis.

If you are getting money as gift or inheritance from a foreign country, you may be required to file Form 3520.
References :
Inheritances: http://taxipay.blogspot.com/2008/02/tax-on-inheritances.html

There will be some reporting requirements however. With the amount of money involved you will need to file a Form 3520 informational return. Don’t miss that one because the penalties for failure to file are severe. The return is due at the same date as your Federal income tax return is. Here’s a link to the form: http://www.irs.gov/pub/irs-pdf/f3520.pdf Here’s a link to the instructions: http://www.irs.gov/pub/irs-pdf/i3520.pdf

You may also have to file a TD F 90-22.1 http://www.irs.gov/pub/irs-pdf/f90221.pdf report if you have signatory authority over foreign accounts with an aggregate value of over $10,000 at any time during the year. This is due by June 30th of the following year. Again, the failure to file penalties are severe, so don’t miss it.
References :