sale of 2nd generation land

[tippytoes]

Am doing an end of the year tax forecast for a client. He moved here from the midwest and a number of years ago he sold the timber off this 2nd generation (inherited) land and says that the CPA at that time told him it was not taxable and that when he sold the land it would not be taxable. True or false

Thanks,
minipaws

[Bird Legs]

Sale of land

Question, did your client inherit the land? If so, then client would have basis of the FMV
at date of death. If that FMV basis is less than selling price, then, yes, there is a taxable gain. If that FMV is greater than the selling price, then, there is a capital loss.

[Unregistered]

Question, did your client inherit the land? If so, then client would have basis of the FMV
at date of death. If that FMV basis is less than selling price, then, yes, there is a taxable gain. If that FMV is greater than the selling price, then, there is a capital loss.

However, if the timber sale was not reported or was reported as a wash, then that amount of basis is no longer available.