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About Carole Dunton
Expertise
Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions. General knowledge of schedule C for small sole proprietorships. No experience in corporate, estate, partnership or large business returns.

Experience
9 years as tax preparer for major national firm.

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Tax Law (Questions About Taxes) - capital gains on sale of inherited land

Expert: Carole Dunton - 10/27/2009

Question
I inherited 1/4 share of undeveloped land in NM 17 years ago. All owners recently sold an acre. What taxes do I owe?

Thank you very much.

Answer
Hi,

You will pay long term capital gains tax on your gain. Your gain is the difference between the sale price and the fair market value on the date of death of the person from whom you inherited it less expenses of the sale (real estate commissions, legal fees and the like). The maximum tax rate is 15%.

Regards,
Carole

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