Tax Law (Questions About Taxes)/Estate Taxes


Dear Mr. Stancil:

My mom purchased a property in 1971 for $15,000.  When she died in 2001, it was worth $105,000.  Now, 13 years later, my two brothers and I (all equal beneficiaries of her estate) sold the property for $162,000.

1)  Is the costs basis for the house $105,000?
2)  Will the capital gain be distributed equally to each brother's k-1, or will the estate pay the capital gains tax from estate funds?

Thank you.


Thanks for your question.

Your cost basis is the fair market value as of date of death.  The tax can be paid by the estate or the beneficiaries. It results in less tax if the beneficiaries pay the tax.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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