Legal Question in Tax Law in Illinois

Can't say; insufficient information. First, what if any tax plan did grandmother have when she transferred the property to your dad and uncles? If none, some taxes (gift or otherwise) may have been payable, and may remain payable (now with interest, penalties and what have you). Let's assume, however, that an appropriate tax plan was in effect and properly carried out at the time, and that any taxes were handled properly. The question is what is your dad's and uncles' tax basis in the property -- what did they put into it -- it appears to have been $0 since it was apparently a gift (if there had been proper tax planning they may have taken at the then fair market value....). The other unstated factor is how the land has been held by your dad and uncles: as an operating farm, fallow as an investment, rented to tenant farmer(s), as family homestead, some of the above....or what. Also, what if any capital improvements have been made so that basis is more than $0; le'ts assume none. So now, on a sale, unless there was a tax plan put into play by grandmother and/or dad and his brothers, or unless one is put into play now, it is highly possible that the farm will be treated as a capital asset with a $0 basis and every net sale dollar will be taxable, and whether it is treated as capital gains (or loss given the current economy) or ordinary income is uncertain as well. If a portion is homestead for any of them, a portion may fall under the personal lifetime exemption for primary personal residence. And that's just the federal side of things -- there's also the State of Illinois to consider. Time to see a CPA or good tax lawyer - one option may be a tax free exchange....for all or part of the property.