What is the name of your state (only U.S. law)? Texas
My parents have owned 35 acres for at least 20 years. It's not their home, but the rent out a mobile home on the property and lease the rest for cattle. The value of his estate is below the amount that would cause an inheritance tax. I know if they sell the land before their death there would be a capital gains tax. If the land was past on as part of their estate the basis for the recipient would be the FMV at the time of my parents death. Can we avoid most of the capital gains tax by allowing it to pass upon their death?
My parents have owned 35 acres for at least 20 years. It's not their home, but the rent out a mobile home on the property and lease the rest for cattle. The value of his estate is below the amount that would cause an inheritance tax. I know if they sell the land before their death there would be a capital gains tax. If the land was past on as part of their estate the basis for the recipient would be the FMV at the time of my parents death. Can we avoid most of the capital gains tax by allowing it to pass upon their death?