Inherited property sold after 7 years for 230,000, appraised value at time of inheritance plus allowed expenses 148,000, capital gains of 82,000--no problem yet.
However 25,000 of the 230,000 will be withheld until such time as certain contract stipulations are met but not more than 3 years
Do I pay CG on the 82,000 and file an amended return if the full 25000 is never realized....or
Do I account for this holdback now, reducing CG to 57,000 and pay CG on that amount when it is received.