ed wrote:

- quote -

WRONG. Do NOT use the father's death date as the date of
acquisition. Instead, write "INHERITED" in the acquisition
date column (per the instructions for 1040 Schedule D).

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Johnny Mc wrote:

- quote -

You've got the sense of it.

Find out the fair market value of that land 6 years ago, use
that as "cost" and then use schedule d to report same.

ChEAr$,
Harlan Lunsford, EA n LA
1 Apr 2005

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Johnny Mc wrote:

- quote -

Your cost basis is the FMV on the day your father died.
Assuming you held the land for investment, your long term
capital gain is what you received less your cost basis.
Report it in Part II of Schedule D.

--
Alan
http://taxtopics.net

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You use Schedule D using the date of father's death as date
of acquisition and the fair market value on DOD as the
purchase price. It is a long term capital gain and will be
taxed at a maximum of 15% and possibly only 5% if you are in
the 15% or lower tax bracket.

ed

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"Johnny Mc" <familysailor[at]myrealBAD-BEERbox.com> wrote

- quote -

No.

- quote -

Yes, for the most part. There will be additions to your
cost basis over the past six years for any land improvements
(if any) and you can deduct the sales costs from your gain.

- quote -

Schedule D. Since it's long-term, the gain is taxed at 15%
maximum.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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"Johnny Mc" <familysailor[at]myrealBAD-BEERbox.com> wrote:

- quote -

You report the sale on line 8 of Schedule D of the 1040.
Your basis is the land's value at the time of your father's
death. The increase is your long-term taxable capital gain.

--
Phil Marti
Clarksburg, MD

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In 2004, I sold some land I inherited when my father passed
away about 6 years ago. I received a 1099S for the full
amount. Do I have to pay taxes on the whole amount as if it
were income? Or, can I just pay taxes on the increased value
since I inherited it? If so, what forms would I use?

--
Thank you,
Johnny Mc

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