My mother passed away last year and my brothers and I inherited some farmland in Illinois. I live in California; neither of my brothers live in Illinois. I didn't want to own the land so my brothers bought my share. We agreed on a price and filed the paperwork, which took several months. It's my understanding that there are no capital gains to be paid on this sale, since I sold my share to my brothers immediately after inheriting the land (paperwork delays notwithstanding). However, I am unsure about how to report this on my tax returns, or even if it's necessary to report it at all.
On the federal return I can enter the sale as an investment sale that did not generate a 1099-B. The sale price is the same as the basis, so no taxes are due. Is that the correct procedure?
On the state level, is there anything I need to report to either California or Illinois?
