Going to play "Devil's Advocate" here.
Let's say IRS challenges the numbers. Which number are they going to challenge? If they challenge the FMV of the basis and raise that number, then you might have a non-deductible loss. If they lower that number, then you might have a gain.
But, an argument could be made (especially since the date of death & date of sale are close together), that if one number is changed, then both numbers should be changed to the same thing...unless it could be should the farmland either appreciated or depreciated substantially in the time frame between date of death and date of sale.
Now, if there was a substantial amount of time between DOD and sale, there would be room for fluctuation of value. Or, if this was something that was a bit volatile; such as stocks or something similar. Although with stocks, FMV is easily determined as the value is determined based on the high/low value on DOD...which works for publicly traded stock. Privately held stock is a different matter and might require an appraiser.
Just something to think about and mull over.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
