federal tax question - Posted by EddieB.

Posted by Dave Murray, Ohio CPA on August 21, 2003 at 13:56:49:

“It depends.” - on the basis of the land, which would be the fair market value on the valuation day chosen by the executor. If the basis is less than $30,000, then yes, they will have a realized, and potentially taxable, gain. Whether or not tax is owed depends on their individual situation; if the gain is small and they have very little income other than social security, they may not owe any tax.

federal tax question - Posted by EddieB.

Posted by EddieB. on August 20, 2003 at 09:50:51:

I sent this same question to the IRS but thought I might get a quicker response here. My grandmother and her sister (ages 92&85) inherited land through the death of there sister. the land was sold after 8 mo. for around $30,000.Will they haveto pay federal taxes on their 14thousand something share? Thanks for all replies.