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My wife is excutrix of her uncles estate. She has sold the

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My wife is excutrix of...
My wife is excutrix of her uncle's estate. She has sold the land. Is there any tax implications since she inherited the land? Her uncle paid $5.00 for three acres in 1966. She recieved $27,000. Does she need to get the land appraised so she is taxed on any profit above what is appraised for?
Submitted: 8 years ago.Category: Tax
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7/2/2009
Tax Professional: Lev, Tax Advisor replied 8 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,713
Experience: Taxes, Immigration, Labor Relations
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For inherited property - the basis is a fair market value of the property on the day the decedent died.

If the sale transaction was shortly after that - the sale price may be considered a fair market value - and there is no need for any additional appraisal.

 

She would need to report the sale transaction on her tax return - schedule D - most likely with zero gain - but reporting will eliminate any possible inquiries from the IRS.

 

Let me know if you need any help.

 

Lev
Lev, Tax Advisor
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Customer reply replied 8 years ago
Thanks. We had a realtor give us a comparable price for the land inthat area. That is what we asked. Maybe we should get something in writing from him?
Tax Professional: Lev, Tax Advisor replied 8 years ago

Again - if the sale transaction was shortly after that - the sale price may be considered to be a fair market value - and there is no need for any additional appraisal. sale contract would be sufficient to support your decision.

 

But if the property was sold long time after it was inherited - you might need a historical appraisal on the day the decedent died.

 

Let me know if you need any help.

 

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