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Hi and welcome to Just Answer!As a general rule - the basis is the purchase price.When the property is inherited - the basis is the fair market value of the property at the time the decedent passed away.
When the property is gifted - the basis for the recipient of the gift is generally the lesser of the donor's basis and the fair market value (FMV) at the time of gifting. Thus - if the property increased in value - the donor's basis should be used, but if the property value decreased - the basis would be the FMV.Because - the value of the land most likely increased between 1975 and 1999 - the basis of the gifted portion of the land is likely its fair market value in 1975.
Thank you, XXXXX XXXXX my question.
If the property is sold now - we need to determine two values - the value of the life estate and the value of the remainderman interest. Thus - each owner will report the sale transaction of a percentage of the land he/she owns.
Yes, I found the tables with those figures.
The value of the life estate is determined based on the age of your father at the time the property is sold.