@azelea24 generally agreeing with the comments by @Anonymous and adding a little--->
(a) I am assuming that this agricultural land is not "etijido" land per MX laws
(b) your father's basis in the property is either acquisition cost ( converted to US$ at the time of acquisition ) or if by Fair Market Value at the time of death of the decedent ( if by inheritance ) . If there were any improvements made then those costs add to the basis of the property.
(c) the gain may be taxable income -- GAIN is the sales price LESS sales expenses ( commission, advertising costs. surveys, transfer taxes etc. ) LESS Basis in the property.
(d) Ideally he should file a return showing the disposal of the property, even if there is no taxable income. Note however that this gain income may make his Social Security income partly taxable. I say file because this is safest way to make sure the IRS will not start auditing and files are cleaned out.
(e) the gift that you receive is not taxable to you. Also note that gift reporting is based on the free amount per donor per donee. Thus if the limit for the year is 13,000 and you receive $18,000, you father and your mother ( when they file jointly ) each is eligible to claim the free limit i.e. their joint free limit is $26,000 per child/beneficiary -- hence no reporting of the gift may be required.
If you need more help, please feel welcome to ask more questions/help by commenting on this thread
Adios
