Legal Question in Real Estate Law in Texas
I have some farmland I am considering selling. When my father passed away in 2001 the land of course when to my mother. The land was put in my name after that.
My question is, what will the capital gains be figured on-the value of the land when my dad bought the land fifty years ago or the value the land when he passed away or the value of the land when it was put in my name.
Thank you so much for your help.
Sincerely,
Marsha Naylor
1 Answer from Attorneys
It depends. Had you waited until after your mother's death, you would have inherited it at a stepped up basis and there would be no capital gains.. Since you had it put in your name before your mom died you assumed her basis. The question is, was the farmland your father's separate property when he died? If so, your mother would have taken it at the 2001 stepped up basis. Then, you need to ask, what is the appreciation from 2001 to present, and it is possible there was no appreciation. If your mom and dad were co-owners, there is yet another answer. Best to talk over the specifics with your cpa.
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