How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

In June 1999 I inherited 36 acres of farmland after the death

Resolved Question:

In June 1999 I inherited 36 acres of farmland after the death of my mother. When the estate was appraised the land was appraised at $2400/acre. I am going to sell the land and have found a buyer who will pay $4,500/acre. This means a gain of $75,600 (4500 minus 2400=2,100 X36=75,600) My 2008 federal tax return has a taxable income of $23,994. My state (Ohio) return taxable income is $35,637. What taxes will I HAVE TO PAY?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

Please verify that the appraisal back in 1999 was correct. You might want to contact a professional appraiser who will provide historical appraiser of the inherited property.


You correctly determines the capital gain.

That would be long term gain - taxed at reduced rate - not more that 15%

Part of the gain that fall into 15% tax bracket and below will be tax free.


Thus - if you are single the 15% tax bracket is limited by $32,550

So $32,550 - $23,994 = $8556 will be tax free and

$75,600 - $8556 = $67044 will be taxed at 15% long term capital gain rate.

Ohio state taxes will be about 4.5%


Let me know if you need help with reporting.


Lev and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
Does this mean that federal tax owed will be $10,056 and state tax $3,016! i hope this is wrong.
Expert:  Lev replied 8 years ago.


Based on estimation above and my assumptions - that is correct. I wish to bring better news for you...


That is why I asked you to verify if the FMV back in 1999 was determined correctly - if the value was below the market value - you need to order a new historical appraisal.


Also I estimated based on 2008 tax rate and on assumption that you are single.


Lev and other Tax Specialists are ready to help you