Hi and welcome to Just Answer!
Different expert here and different answer.
Inherited property is ALWAYS treated as long term - not short term - and the capital gain will be taxed at reduced long term capital gain rates.
The issue in your situation - to determine the basis.When your mother inherited the farmland - the fair market value of the property is her basis.If the property was placed into an irrevocable trust - the basis will remain the same.If however - the property was placed into revocable living trust - the basis would be the fair market value of the property at the time your mother passed away.In any case - if the farmland is sold by the trust or distributed from the trust to beneficiaries and sold by beneficiaries - the gain (if any) will be taxed as a long term capital gain regardless of your holding period because that is an inherited property.
See instructions for reference - http://www.irs.gov/pub/irs-pdf/i8949.pdf.
second page - left column - Generally, if you disposed of property that you acquired by inheritance, report the disposition as a long-term gain or loss regardless of how long you held the property.
Let me know if you need any help.
It IS correct, regarding the fact that basis is long term when property is inherited.However, where this expert is completely wrong is in the assumption that we have enough details here to exclude the possibility that the trust itself may get the step up in basis, if the property is sold by the trust, rather than you, as beneficiaries.If the trust is irrevocable, it is the TRUST that will get the step-up, and will only do so if the property was inherited by the trust ... If the property was gifted to the trust, what the beneficiaries will receive is a deferred gift with a carryover basis.Again, you need to provide (1) what sort of trust (simple vs complex among other things) (2) How the property was conveyed to the trust and (3) Enough of the terms of the trust, to determine what the TRUSTEE has the power to do and cannot do