Beneficiaries of inherited land and other capital assets are generally entitled to an adjusted basis (aka a step-up basis) for capital gains tax purposes. However, this exemption must be properly documented.

Your executor will want to get advice from his or her CPA about filing the proper tax forms to document an adjusted basis.

Form 706: https://www.irs.gov/forms-pubs/about-form-706

Form 8971: https://www.irs.gov/forms-pubs/about-form-8971

The Elder Law Practice does not prepare or file tax forms. While there are many good CPA firms, if you do not have a CPA firm, the Elder Law Practice uses Nichols Cauley.

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