Capital Gains

[c10263]

I will try to keep this as brief as possible but a minimum of 2 CPA's and 1 lawyer have been contacted and we have received different answers from each so we are still not sure how to file.

1942 - Great-grandfather died - his will leaves life tenancy to his son - upon sons death life tenancy goes to sons children - once all of those children die their children, which includes myself, are the remaindermen.

2004 - Grandfather dies

2006 - His children and the remaindermen sign an agreement to sell the property giving
the remaindermen and the two living life tenants equal shares of the money once property is sold.

2010- Property is sold - money is split between remaindermen and 2 life tenants.

We don't know what value to use as the original tax basis.

These are the responses we have gotten so far:

1. The value of the property in 1942.

2. The value of the property in 2006 when the agreement was signed.

3. The same as the sale date because that was when the terms of the will were broken.

I'm sorry this is so confusing but we really do need someone who can explain why we are getting so many differnet answers and which is the best way to file.

 

[wayneparsons]

2004

The date of death for your grandfather. Why? because of the agreement to sell the property and your granfather's estate. The property gets a steipped up basis as of the date of death. You can look to the tax roles to determine the value for the year 2004. I don't believe the IRS would give you too much trouble.

Caveat: If we're talking over one million dollars, you should get an estate tax attorney to help you. Call me for a referral 972-839-0456