Income taxes for sale of Inherited property

[Collins1078]

What is the name of your state (only U.S. law)? Kentucky

Let me know if I need to post in the Will / Estate forum, but I assumed because the inherited land has been auctioned it will not be treated any different that any other land auction.

My scenerio:
My great uncle left myself and 6 others a farm that just sold for 250K.
We inherited the land 12 years ago, but my father had inherited lifetime rights.
At my father's death the farm was put to auction.
It had a PVA value of 150K in 2008.

Will the individual taxes due at the end of the year will be based on the profit of 100K divided by 7?

Thanks

[FlyingRon]

The capital gain is what it is sold for less the basis. The basis is most likely the value of the property on great uncle's death. The recipients will each be taxed on their share of the capital gain (15% for feds + whatever is due in Kentucky).

[tranquility]

The basis is stepped up at the time of the first death (for your purposes) even though there was a life estate on the property. Unless the property was in a trust or partnership of some sort, the capital gains are each person's responsibility to report on schedule D.