GA - Sale of Land that was a gift

[jmd00ley]

What is the name of your state? Georgia

In March 2001, my mother deeded 2.536 acres of land to me. I did not pay anything for this land other than lawyer expenses and a $1.00. As far as I know, my mother did not pay any “gift” taxes on the land that year. The history of the land is as follows. My great grandmother was deeded/given the land back in the early 1920’s when her husband passed away. In the 1970’s my great grandmother gave my mother about 3 acres of land. Again, no monies where exchanged between my mother and great grandmother. In November 2005, I sold the 2.536 acres of land for $45000. So, my question is how do I claim this on taxes (i.e. what should I use as my cost basis)?

[abezon]

Your basis is whatever your great-grandparents paid for the land. There might have been a basis step up in 1920 when g-grandpa died, but it's largely irrelevant.

If you can't find the property tax records for the original purchase, you'll have to use a basis of $0. You can add to that any improvements made since purchase, such as installing a well or power lines, if you can find the info.