USA Are taxes owed on land sold after being inherited?


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Inherited land (Illinois) was sold in a cash deal to a neighbor at the end of the probate process. Do I owe any taxes on this transaction from 2009?
 
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kirby

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Typically, inherited assets (land included) have a basis for tax of the fair market value at date of death of owner. So if owner bought it for $1 and years later at death it was worth $100,000 then the tax basis is $100,000. Of course to prove that you need an appraisal. It follows then that if you sold it right after death for $100,000 there is no tax gain. But if you hold it for say a year and it goes up in value to $250,000 then there is a tax gain of t&150,000 which is the $250,000 you got less the $100,000 tax basis.
 

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