By Andy Biebl, DTN Tax Columnist
I have a current landlord that inherited acreage in September 2014, but now is considering selling, possibly by public auction. Recent land auctions have sold at more than $10,000/acre. Are capital gain taxes calculated differently with inheritance? I was hoping to approach the landlord with the benefit of a private contract sale — savings on their taxes, no auctioneer commission, etc. I would like to purchase private treaty, since I’ve farmed this property for more than 40 years.
When property passes from a decedent, its tax basis is adjusted to the fair market value (FMV) of the property as of the date of death. This is known as the “step-up in basis”...