This land sale is still driving us nuts....we received a1099-S ...so we hired a 'tax attorney' who said he could help - 5 weeks later we still do not have a final answer.... here is what he said last time we spoke - - the transaction is a 'part gift/part sale' He indicated that he need to know what our folks paid for their property (full 15 acres including their house) in 1957...($15,000) and he also needed to know what the value was in 1983 when dad passed away. (?) so he could figure 1/2 of the value that was moms at that time. Indicating moms basis would be $7,500 + 1/2 of the 1983 value. This doesnt make sense to us/sounds like he's figuring the entire acreage as her cost basis?
He indicated we would not need to file a Form 709, but if not where does the 'gift' come into play?
When we first spoke with him he thought we might be able to use the amount of the sale and substract what the 'fair market value' was in 2015 from the total price we received & we would pay capital gains on that. Now its becoming so much more complicated/we are more confused that ever.
I would so appreciate anyone that can help us sort this out. Thank you in advance!!!
