In 1986 my mother passed away suddenly with no individual will - only my parents' joint will. This year my father sold all of her land (for $85k) in Louisiana (we live in MS) with the plan of paying the capital gains tax and giving the proceeds to all of us, his children (who would then pay taxes too being over $11k). According to Louisiana law (Napoleanic code?), since there was no will, the proceeds of the sale go to the children - all now in their 40s not the spouse. Each will get about $27k. My question is, in April of '07, on my '06 taxes, will this be counted as a tax-free (I think if under $2 million) inheritance or will I need to get a record of its appraised price in '86 and pay capital gains tax on the proceeds using a cost basis on the price difference from '86 to '06?
2006-07-21
09:35:01
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5 answers
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asked by
stklotto
4
in
United States