topic Capital gain tax estimate on farm and house sold in 2018? in Deductions & credits

Capital gain tax estimate on farm and house sold in 2018?

rap14sep — Thu, 06 Jun 2019 15:45:32 GMT

Mother age 92 owned farm since 1947. sold in 2018 home & 2 acres sold for 145000. 19 acres sold 171000. The estimated cost in 1947 was 200 per acre. Her taxable income 2017 was 59000

Did she own and use the home and 2 acres as her principal...

suzyquzy — Thu, 06 Jun 2019 15:45:34 GMT

Did she own and use the home and 2 acres as her principal residence for 2 of the 5 years prior to the sale?

For the 171 acres her long-term gain is 171,000 - (200x19=3800) = 167,200. The maximum tax is 20% or 33,440.

BUT: Did she own it herself since 1947? Or did she own it with your father/her husband who may have died sometime between 1947 and 2018?

This was her principal residence and was living there unt...

rap14sep — Thu, 06 Jun 2019 15:45:35 GMT

This was her principal residence and was living there until july 2016 when she moved into assisted living facility. She was joint owner with her husband who died in 1994.

1/2 her basis is 200/acre. The other half is 1/2 the FMV...

suzyquzy — Thu, 06 Jun 2019 15:45:37 GMT

1/2 her basis is 200/acre. The other half is 1/2 the FMV of the property on the date of her husband's death in 1994.