Legal Question in Tax Law in California

sell farm

I have a client who with her three sisters wonders if it is possible to buy their fathers farm in Ohio for $1, thus sidestepping capital gains for him. What would be their tax consequences?


Asked on 5/14/06, 10:31 pm

2 Answers from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

Re: sell farm

there are several issues here that need to be addressed before any transaction is contemplated - capital gains, step-up in basis at death, gift tax consequences, personal residence exemption. you should consult an estate planning attorney with tax expertise.

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Answered on 5/15/06, 12:56 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: sell farm

His basis would become their basis, and someday they would have to pay the gain. There are much better ways.

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Answered on 5/14/06, 10:57 pm


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