Your cost basis is what you paid for the land plus any money you spent on improvements to it.
Your selling price is the real question. Selling to friends or family below market value is a real gift and that's how the IRS sees it. So you can make a gift of the difference between the fair market value and what your sale price is (you have an annual gift limit of $18,000, or $36,000 if you are a married couple) and be done with it.
This is a business arrangement and so you could also make it out as a rent-to-own deal and draw the papers up that way. Either way it would be a good idea to consult a legal professional in your area before going through with the sale.
@rmfrog1
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