Father passed away in 1997, we are selling property this year would the capital gains tax be 1997 or 07 rate?

Answer 1

Tax rate would be 2007. Cost basis for the property would be what it was worth in 1997 when your dad passed away plus any improvements you have put into it since, less any depreciation taken on it, if it was rental property.

Answer 2

Your question requires greater information to properly evaluate but from what you have provided the tax would be calculated on the 2007 return if you sell the property in 2007. Who holds title and how that was transferred in 1997 with your fathers passing will have a great deal to do with what that tax may be. If the title was solely in your fathers name prior to his passing and you inherited it, you will need to know the fair market value on the date of his passing and his basis at the time to determine the tax.

Answer 3

The rate would be 2007 however the cost basis would be adjusted to whatever the fair market value was on the date of your fathers death. If you didn't have it appraised at that time, you can look at the county records for similar land sales at that time. Depending on how long your father had the land, it could be a significant tax savings since you will be taxed on the net gain or loss of the selling price less the basis.
Hope this helps some.

Answer 4

Capital gains tax is figured in the year that you sell the property.

Answer 5

Whatever tax rate that is in effect in year of sale. If he passed in 97 then any gain would be long; on the Sch D you put down INH for date acquired.

Answer 6

The estate tax penalty should have been assessed in 1997. If you would like, I can give you my number and we can discuss.