Based on the statement about your wife's father having receipt of all income from the property and his right to live on the tract 3 for life, it appears the cost basis for tax purposes is the fair market value on the date of death. Ownership is passed to the beneficiaries upon death in a life estate, as a rule.
An estate attorney is still a good option for certainty.
@mitcheb
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
