Money From The Sale

Jennifer hopes that selling land left to her by her father won't incur any more estate tax.

QUESTION: Jennifer’s dad died in 2005 and they paid all the estate taxes and death taxes. Part of the estate was a piece of land in Florida that they sold last month, and she split the proceeds with her siblings. They sold the house for less than the taxed value from 2005. Will there be any tax implications next year?

ANSWER: Most likely, with any Florida property, you won’t have any tax because the net sales price, or contract price minus closing price, would be quite a bit less than the fair market value on date of death. That’s the amount you use for your cost basis.