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Old 07-20-2017, 04:11 PM
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Capital gains on Inherited property in Louaiana

I inherited 100 acres of rural farm land in 2009. I am looking to sell the property and I wanted to know what if any capital gain taxes I would need to pay. This will be the first piece of property I have ever sold in my life.



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Old 07-20-2017, 06:33 PM
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Selling property you own can trigger capital gains tax, even if you inherited it. You typically need to know your original cost of the property in order to calculate a capital gain. Under the stepped-up basis rule, for an individual who inherits a capital asset, the cost basis is "stepped up" to its fair market value of the property at the time of the inheritance.
Selling something for more than basis is taxable. Your basis for inherited property is usually, the FMV, the property's value on the date of death for the person who bequeathed it to you. However, if the personal representative of the estate chose to use an alternative valuation date, your basis is the property value on that date. If your tax rate is 15% or lower than that then your capita gain tax?ll be 0% and it?ll be 15% if your tax rate is higher than 15% but lower than 38.6%; if its rate is 38.6% then the capital gain tax rate?ll be 29%



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