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USTaxAdvising
USTaxAdvising, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 1237
Experience:  Professional in capital gains and finance related questions
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Sold farm (115+/- acres) that was our mother's on dad's death

Customer Question

Sold farm (115+/- acres) that was our mother's on dad's death in 1999 (will not probated). In 2006, mother turned farm over to son as she was in nursing home (we "bought" her portion of the farm by selling assets on the farm and from the farm). What is the basis value for establishing capital gain taxes owed?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  USTaxAdvising replied 1 year ago.
Hello, The basis value will be the fair value of the assets on the date of dad's death in 1999. When dad passed away the basis in the assets received a "step up" in basis to fair value on the date of his death. IRC 2034 - https://www.law.cornell.edu/uscode/text/26/2034 I anticipate it will be very hard to determine what the fair value of the assets were back to 1999. I would recommend using a professional appraiser to determine the amount if the amounts in question are significant. (+50K) I hope this provides the clarity you were looking for. Please let me know if you have any follow up questions and I will get back to you as soon as I can. Best regards,

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