@sheryljo wrote:
Mom sold/gave my 3 acres to me in 2015 that's why we thought the beginning point would be the fair market value on that date - subtracted from the $190,000 i sold it for. (?)
That would be incorrect and your attorney would be correct. Section 1.1015-4 of the Treasury Regulations controls this transaction as in part a sale and in part a gift.
As a result, your starting basis would be the greater of your mom's adjusted basis at the time of the transfer (2015) or the amount you paid your mom for the property ($3,000).
I would tend to think that your attorney is attempting to determine whether your mom's adjusted basis is greater than the $3,000 you paid for the 3 acres.
Again, you need to follow the advice and counsel of your attorney.
Ref:
§ 1.1015-4 Transfers in part a gift and in part a sale.
(a) General rule. Where a transfer of property is in part a sale and in part a gift, the unadjusted basis of the property in the hands of the transferee is the sum of
(1) Whichever of the following is the greater:
(i) The amount paid by the transferee for the property, or
(ii) The transferor's adjusted basis for the property at the time of the transfer, and
(2) The amount of increase, if any, in basis authorized by section 1015(d) for gift tax paid (see § 1.1015-5).
