WHat do I Use as a Basis for Capital Gains?

[whenry5]

My Grandfather's property was put into an irrevocable trust for the benefit of my mother when he died in 1980. We have an appraisal that was done at that time.  When my mother passed the trust was dissolved and ownership passed to my two sisters and myself in 2013. An appraisal was not done at that time.  We know tax assessment value of the property in 2013. What do we use as a basis for capital gains when the property is sold?

[DaveF1006]

You may need to research 2013 home market values to determine a Fair Market Value. Having a tax assessment value helps but doesn't always reflect the true market value of the house in 2013. If this is all you have, then you can use the tax assessment value as a basis. 

[whenry5]

The property is agricultural land in Indiana. Based on your response I would use a "Fair Market Value" for the land in 2013?

[AmyC]

Yes, you receive the stepped up basis of the 2013 value. The tax assessment value is a good proof of basis. 

A local realtor may have proof of sales in the area to offer a different figure but to find someone with that knowledge and proof, may be difficult.

[DianeW777]

The date used to prepare the Statement of Fair Market Value (FMV) is the date of your mother's passing, December 15, 2011. The acquired date would be the same. Give a description of the property 'Inherited Property'. This will identify it for the IRS.

The date of death is always the date used to determine FMV.

We are sorry for your loss.

@whenry5