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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2270
Experience:  Certified Public Accountant
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Taxes: If property in an estate is sold, should the heirs

Customer Question

Taxes: If property in an estate is sold, should the heirs take their portion in a lump sum or should they take it over several years (kind of like owner financing) so as not to have themselves catapulted into a higher tax bracket?
Submitted: 10 months ago.
Category: Tax
Expert:  Mark Taylor replied 10 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Usually there is a step up in basis at the time of death. Was the property sold shortly after the individual's death?

Customer: replied 10 months ago.
No, we have not sold any of it yet. It has been in the family for over 100 years.
Expert:  Mark Taylor replied 10 months ago.

Wow that is a long time. How was the property owned before it was transferred to the estate?

Customer: replied 10 months ago.
This is a farm that Grandpa started by buying land back in 1910. It has been worked as a farm all these years and now all 5 of his children (our parents ) have passed away with the last one having gone in 2014. Estate may not be the correct term. The lawyer says that we are tenants in common. Anyway, we are now looking to divide it up so we need info on what ways would be best before we dive off into it.
Expert:  Mark Taylor replied 10 months ago.

Do you know what the adjusted basis in the property is? This would determine the amount of gain on the sale?