Farm land sale, part rental

[2floridians]

I have an issue that I could use some expert help with. I have a client with a trust. Her husband passed away 5 years ago and she was left with farmland that was in the trust. Last year she sold 25 acres of the farm land at an auction for 248000.00. The money went to the trust. Then she gave her grand daughter 217,463 dollars to buy a house from the proceeds of the sale. She wanted her enjoy while she was alive and able to see it. Here is the problem, she has no idea what the property was purchased for, or how much, and that was only a parcel of the land. The auctioner or the title company did not issue a 1099 S for the sale. Then she tells me that 12 acres of the 25 are the farmland that she was renting . She has been claiming the rented land for years.

Any suggestion of what to do here? Does the trust have anything to do with it? Where or how do we find the land value? Is it the FMV at the time of her husbands death? What about the rented land? 4797? I think we are looking at an extension for sure. Nothing like waiting until the last minute for this mess. Any suggestions would be grateful.

[DANRVAN]

Well for starters, it depends on what type of trust you are dealing with.

Dan

I have an issue that I could use some expert help with. I have a client with a trust. Her husband passed away 5 years ago and she was left with farmland that was in the trust. Last year she sold 25 acres of the farm land at an auction for 248000.00. The money went to the trust. Then she gave her grand daughter 217,463 dollars to buy a house from the proceeds of the sale. She wanted her enjoy while she was alive and able to see it. Here is the problem, she has no idea what the property was purchased for, or how much, and that was only a parcel of the land. The auctioner or the title company did not issue a 1099 S for the sale. Then she tells me that 12 acres of the 25 are the farmland that she was renting . She has been claiming the rented land for years.

Any suggestion of what to do here? Does the trust have anything to do with it? Where or how do we find the land value? Is it the FMV at the time of her husbands death? What about the rented land? 4797? I think we are looking at an extension for sure. Nothing like waiting until the last minute for this mess. Any suggestions would be grateful.

[kcjenkins]

Since land is not depreciated, it is not really a big issue whether it goes on the 4797 or not, because it's going to the D from there anyway. The basis she has should be the FMV on DOD. So she may not have a very big gain to worry about. You do need to know more about the type of trust, though.