What is the name of your state? INDIANA
I don't know if I have enough information for anyone to answer this question, but I thought I would try.
My grandma died in 1982 leaving 1/2 of a farm to my dad and my aunt. My dad and my aunt have both since died, leaving their portions of the farm to my cousins, my brothers and me. As of 10/31/05, my brothers and I sold our interest in the farm to one of the cousins. When computing our capital gains tax liability, is it based on the time period from when our father died until when we sold the property?
That all seems very simple - here's the part where I may not have enough information. One of my brothers thinks that we have to go back to the date of Grandma's death because of the way her will was written. There was something in her will about Dad and Aunt Barb owning the farm, but they couldn't sell their interest - or they couldn't sell it unless they got permission from my cousins, my brothers and me. (Not that ANY of us would have objected!) And I don't know what that meant about the gain they *would have* received had they sold - but of course they didn't. My brother has been told by a tax accountant that our capital gains tax will be computed back to the date of grandma's death, but that doesn't seem right to me since we didn't really *own* anything until our father died.
I understand if I don't have enough information for you to give me an answer - the answer may lie in my grandma's will - but is there a specific type of clause I am looking for?
Thank you in advance,
Laura
PS... I posted this in the wrong area first, and now moved it.
I don't know if I have enough information for anyone to answer this question, but I thought I would try.
My grandma died in 1982 leaving 1/2 of a farm to my dad and my aunt. My dad and my aunt have both since died, leaving their portions of the farm to my cousins, my brothers and me. As of 10/31/05, my brothers and I sold our interest in the farm to one of the cousins. When computing our capital gains tax liability, is it based on the time period from when our father died until when we sold the property?
That all seems very simple - here's the part where I may not have enough information. One of my brothers thinks that we have to go back to the date of Grandma's death because of the way her will was written. There was something in her will about Dad and Aunt Barb owning the farm, but they couldn't sell their interest - or they couldn't sell it unless they got permission from my cousins, my brothers and me. (Not that ANY of us would have objected!) And I don't know what that meant about the gain they *would have* received had they sold - but of course they didn't. My brother has been told by a tax accountant that our capital gains tax will be computed back to the date of grandma's death, but that doesn't seem right to me since we didn't really *own* anything until our father died.
I understand if I don't have enough information for you to give me an answer - the answer may lie in my grandma's will - but is there a specific type of clause I am looking for?
Thank you in advance,
Laura
PS... I posted this in the wrong area first, and now moved it.
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