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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 42846
Experience:  Texas lawyer for 30 years in Estate law
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My brothers and I inherited 1800 acres of south Georgia land

Customer Question

My brothers and I inherited 1800 acres of south Georgia land from our mother in 1991. We recently sold 278 acres and my brothers and I each received a portion of the sale. A Georgia CPA told my older brother to have two checks sent out to each of the siblings for $9000 - a total of $18,000 to each sibling with the instruction to deposit each check a week apart so as not to alert the IRS. My husband and I, who live in Texas, feel uncomfortable about this - we don't want to be penalized or get into any trouble over this. Can you advise us as to the laws around this? Thanks so much.
Submitted: 2 years ago.
Category: Estate Law
Expert:  RayAnswers replied 2 years ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

Here there would be capital gains due on the difference between the amount it was worth in 1991 and what it was worth when it sold.

This is called the capital gain and taxes are due on it.

There is no federal or state inheritance tax it is just the gains.Any CPA who is telling you this should be reported tot he CPA board as he is putting you at risk for tax fraud and some serious penalties.

These are long term capital gains and the rates depend on what bracket you are in here income wise..

You will need to locate from the local tax assessor or the inventory from probate the value of the land in 1991 to calculate what you owe here.

File a complaint against the CPA here.

Effective July 1, 2014, the Georgia State Board of Accountancy was transitioned from operating as a licensing board within the Secretary of State’s Professional Licensing Board (PLB) Division to operating as an attached agency of the State Accounting Office.

You can reach the GSBA at its new location and via new contact information listed below. All inquiries are important to us and will be addressed as soon as possible.

Mailing Address: 200 Piedmont Avenue, Suite 1604 West Tower, Atlanta, GA 30334
Email Address: *****@******.***
Telephone: ***-***-****

You are right to be concerned, there is potential for fraud if you do not include this on your return and pay the capital gains due here.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

Expert:  RayAnswers replied 2 years ago.

A simple example of how to calculate the capital gains due..

Thanks again, have a great labor day weekend..

Expert:  RayAnswers replied 2 years ago.

If you can leave a positive rating when we are done it is always sincerely appreciated,