Sale of Inherited Farm

[Sylv66TX]

Client is Single, 76 year old widow, inherited 300 Acre Ranch 15 years ago, sold it , owner finance in December 2016, having difficulty calculating basis. What is the proper way to figure it out, since it was inherited and she really had no improvements on it? thus far she has only presented closing costs as expenses.

[spanel]

Client is Single, 76 year old widow, inherited 300 Acre Ranch 15 years ago, sold it , owner finance in December 2016, having difficulty calculating basis. What is the proper way to figure it out, since it was inherited and she really had no improvements on it? thus far she has only presented closing costs as expenses.

Basis is FMV at time of inheritance. Proper way will be to have it appraised.

You will also need to do a 6252 until paid in full (this will be for the profit if any) & include interest on sch B.

Chris

[Sylv66TX]

thank you so much, I am already working on getting client to bring in appraisal on farm when she inherited it.