Taxes on sale of inherited real property
 

I live in GA, but I own some acres of piney woods in SC. I paid nothing for the land other than yearly property taxes, as I inherited it. This area is being developed into upscale housing on large lots.

If I were to sell the entire tract, what % would I owe in taxes to Fed, SC, and GA?

What was the property value at the time of your inheritance?

When you inherited it, the executor should have had a market appraisal in WRITING performed. You would owe tax on the capital gain. State tax should be just for the state you file your taxes in; GA I assume.

There is a sizable exemption for Federal estate/inheritance taxes and the same is true, in varying degrees, of all 50 different states. You need a CPA firm, probably in your home state of Georgia where you file, who is conversant or knows someone familiar with tax laws in SC. I would expect you'd have to file returns in both states, as well as Federal.

It was probably low since it is retired farmland that had grown into piney woods, and there was little development then, maybe $1000 an acre? Now selling for about $5000 an acre

Hmmm, I have no idea if this was done.

Well, I guess if it sells anytime soon, I'll be looking for a CPA instead of using Turbo Tax as usual.
Thanks everybody

It should have been done to settle the estate. With the appraisal, that will give you your cost basis for the property.

Your taxes on the property are based on the value assessed at the time of title transfer. So, you could calculate the initial assessment in reverse as long as you know the property tax rate and any increases since you came into possession. Or, dig up your first property tax payment document... The amount you paid and the % will give you the value assessed at that time.

Or you could go to your county office and have the tax records looked up.

Depends on your income:

http://forums.pelicanparts.com/uploa...1617383046.JPG

I would be as aggressive as your accountant recommends on the acquisition basis but I do hope the market value appraisal was performed at time of inheritance.

Even if the appraisal was performed and Turbotax can calculate the tax due, I would still talk to an accountant as they may know something about favorable basis adjustments?