Will we have to pay taxes on the land left by our mother? 3 Answers as of January 14, 2017

Mother passed away 2 years ago and left 15 acres to my sister and I. We are going to sell it.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Ashcraft & Ashcraft, Ltd.
Ashcraft & Ashcraft, Ltd. | Randall C. Romei
I assume your mother's taxable estate was not large enough to require any payment of an estate or inheritance tax. The value of her taxable estate would have to be in excess of $5 million to result in a federal estate tax. The Illinois state inheritance tax comes into play at a lower figure with a more complicated calculation but for simplicity lets assume the value of her taxable estate was less than $3.5 million, thus no state inheritance tax. You will have to pay a capital gain tax based upon how much the sale price exceeds the costs of sale plus the value of the property at the time of your mother's death.
Answer Applies to: Illinois
Replied: 1/14/2017
Law Office of T. Phillip Boggess | T. Phillip Boggess
I'm assuming all the final taxes (income and estate, if any) were paid on your mother's estate. I'm also assuming that the property taxes have been paid and are up-to-date. If this is true, then you can claim a stepped up basis in the land to the time when your mother passed. Any gains from that time would be considered income and subject to income tax.
Answer Applies to: Illinois
Replied: 1/14/2017
Shimberg and Crohn, P.C. | Jonathan Shimberg
Any gain in value from Mom's date of death to the date of sale is taxable as a capital gain. Talk to an accountant.
Answer Applies to: Illinois
Replied: 1/12/2017
Click to View More Answers: