inherited land

[skeezyg]

What is the name of your state? Louisiana
My mother died in 2001 and left to me 40 acres of land. It was, at one time timber land, however, she had the timber cut over ten years before her death and never replanted. So it isn't farm land and hasn't generated any income. I am about to sale it for $37,500.00. I'm pretty sure it has not appreciated since her death. Will I be required to pay a capital gains tax on the money? Since no land in the vicinity has been bought or sold in many years and there was a question about the land's apprasial. My realtor started out asking $13,000.00 for it but I settled for less than a thousand an acre.

[Snipes5]

You will have to determine the value of the land at your mother's death.

You then subtract that amount from the sale price, and that is your gain if it's positive, and your loss if it's negative.

We can't tell you how this will turn out, as we know absolutely nothing about either your situation or the actual property.

Snipes