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Tax Law (Questions About Taxes)/Land Value at time of inheritance


I inherited a parcel of land in the mid-2000's and have held onto it until recently.  It sold last month and I will need to report the sale on my income tax return for 2016.  I know I have to report the difference between the inherited value and the sales value for income tax purposes. How do I value the land at the time of inheritance?  There was never an appraisal done and the only information I have is the accessed tax value of the land at the time of inheritance.  Typically, the accessed value by the county is way under what the actual value is that could have been realized had I sold it at the time.  The only other information I have is what it was valued at by Zillow at the time which is just an estimate.  Thanks.

A good licensed and axperienced appraiser can value the land today at the fair market value of the land dated when you inherited it.  Depending where you are in the country, a qualified appraisal could run 400 to 6 or even 800.  But it would be well worth it in possible tax savings and audit risk "insurance".

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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