inheritence

[Jerry8343]

What is the name of your state (only U.S. law)? Pennsylvania. I recieved 5,000 for land that was passed on to my father from his grandfather and then to me after my fathers death. This was something that my father didn't know anything about but I was contacted by a coal minning company that wanted to mine the land and I was wondering if I file this as a capitol gain for income tax.What is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania. I recieved 5,000 for land that was passed on to my father from his grandfather and then to me after my fathers death. This was something that my father didn't know anything about but I was contacted by a coal minning company that wanted to mine the land and I was wondering if I file this as a capitol gain for income tax.What is the name of your state (only U.S. law)?

The land itself was an inheritance (even though your father didn't know about it) so you have a stepped up basis on the land as of the date of your father's death. If the coal mining company bought the land from you then your capital gain is the difference between what the land was worth when your father passed away, and the 5k you received.

If you didn't sell the land, or didn't own the land but only owned the mineral rights and sold or leased those, then I would recommend that you see a local tax professional.