Selling inherited land

[Msw10224]

I sold some inherited land. What documentation do I need to show the value of the land when I inherited it?

[MariaDG1]

The value of inherited property is typically the fair market value of the property on the date of the decedent's death.  You can get a property appraiser to assist you with this analysis if it wasn't done at that time. 

The exception would be if the executor of the estate elected to use an alternate valuation date, which would have been reported on the estate tax return. 

[rschule1]

Hi there:

Condolences on your loss. In absence of a valuation at date of death, then a real estate agent who is knowledgeable of the area and with access to an MLS listing service might be able estimate the value. Good luck.

[Cindy4]

Hi @Msw10224 !

According to the IRS the value is established as: 

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

If you don't have a form 706, you can get local real estate agents to estimate it, or get an actual appraisal.  

Here is a resource from the IRS:

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritan...

Hope this helps!

Cindy