Do you have to pay taxes on land that was sold as part of an Inheritance?

Question

I have four brothers. Our father gave us some land that he owned in another state. If we sell the land, which is part of our Inheritance, Do we have to claim the money as income and pay taxes on it? Each brother will receive a little over $15,000.

Answer 1

I'm not clear where you are, but it sounds like you are in the USA.

The US has different rules than Canada.

If you are in Canada, and you have inherited land, first of all, there is no inheritance tax in Canada.

Also, if your Dad is still alive, and has just given you the land, he'd be the one that is responsible for the capital gains. If he has passed away, and his estate has sold the land, it is still his estate that will pay the capital gains taxes.

Answer 2

Are you in Canada or the U.S. ? I ask the question because you said the the land was in another state. We don't have states in Canada, we have provinces. If you are in Canada and the land is in the U.S., then we have issues with both Canadian and U.S. taxes, so you need to be very specific about which country the land is in and which country you are in.

Answer 3

You'd pay taxes on any appreciation since your dad died and you inherited the land, not on the entire selling price.