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My estate sold a vacant lot adjoining the deceased's

My estate sold a...

My estate sold a vacant lot adjoining the deceased's residence for 300,000. The basis from the year 1956 was 12,500. There must be a way to adjust the basis upward but I can not find it. How is this done?

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Answered in 3 minutes by:
3/21/2018
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,789
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Hello. Thank you for choosing this Q&A service for assistance. My name is***** will be assisting you. Did you inherit the land that was sold? What was your relation to the deceased?

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Customer reply replied 4 months ago
No I am executor. The estate sold the land. I am the executor and son.
Customer reply replied 4 months ago
This site does not seem to be working. It is not providing any information and keeps asking for additional credit card information.

It appears that you requested a telephone call, but the payment failed for the telephone call. The telephone call is an additional fee to the question fee.

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I think you are referring to the Stepped up basis, whereas the cost basis is the FMV at the time of death of decedent. I will check to see if the step up basis rules applies to estates. I know that it applies to inherited property. I will get back to you shortly.

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Yes, the step up basis rule applies to estates as well. This means that the cost basis of the property sold is the FMV of the property on the date of death. SEE BELOW:

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One thing that many people find confusing is the step up in basis and how it applies in evaluating the size of an estate. While the step up in basis is confusing, it’s actually a good thing. It can be used to reduce the capital gains tax you’ll pay on the sale of an appreciating asset and can help reduce your overall estate tax for heirs later on.

REFERENCE SOURCE:

http://howardkayeinsurance.com/step-basis-apply-estate-evaluation-death-spouse/

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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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