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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15180
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am an 86 year old widow. My husband and I bought25 acre

Customer Question

I am an 86 year old widow. My husband and I bought25 acre property in 1982 which is now planted in timber. I have had an inquiry into purchase of the property. There is a great increase in value. Would it be to my beneficiaries tax benefit if I do not sell and let them inherit at my death?
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: She will have to ask me if there is something she needs to know.
Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 9 months ago.

Inherited property receives a "step in basis" unlike a gift which retains the cost of the giver. It is generally more beneficial to inherit than be given property.

The basis of property inherited from a decedent is generally one of the following:

  • The fair market value (FMV) of the property on the date of the decedent's death.
  • The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Expert:  Robin D. replied 9 months ago.

Hi, just checking back to see if you needed clarification.