I have a client that sold timber from their personal property that they have owned for me than 20 years.
Does anyone know the proper way to find the cost basis?
I found online the FMV of timber when they purchased the property (340.30). Then found the FMV of when they sold it (517.00) and divided that by the total dollar amount that they received (25415.45). Then I took that number (49.16) and multiplied it by the FMV of the timber at the time of purchase (340.30) and used that as the cost basis (16729.15). Is that right?
Does anyone know the proper way to find the cost basis?
I found online the FMV of timber when they purchased the property (340.30). Then found the FMV of when they sold it (517.00) and divided that by the total dollar amount that they received (25415.45). Then I took that number (49.16) and multiplied it by the FMV of the timber at the time of purchase (340.30) and used that as the cost basis (16729.15). Is that right?
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