logged off - inherited land - basis?

[WITAXLADY]

Mind is slipping -

Daughter inherited land and immediately logged it off

Is basis the amount she received? or -0-

Thank you

D

[Lee B]

You need to know FMV at date of death which would require a timber cruise appraisal.

[WITAXLADY]

ok thank you

[mcbreck]

I never would have figured out what you meant by logged off.

[Lion EA]

TimberTax.org

[DANRVAN]

3 hours ago, WITAXLADY said:

Is basis the amount she received?

Yes, if there was not a significant change in the market price from date of death to the date it was logged.

Subtract the basis of the timber sold from the basis of the land.

If you are dealing with a short time period, you don't have to account for the increase in volume due to the growth rate of the trees from date of death to harvest.  I have worked with timber consultants in cases where several years have passed to determine the volume and market price of the harvested timber on date of death.

[Lee B]

Since she didn't sell the land what is her stepped up basis for the land?

[DANRVAN]

On 4/13/2022 at 2:04 PM, cbslee said:

Since she didn't sell the land what is her stepped up basis for the land?

Not sure why you are asking.  My position is that I am unaware of any authority which states an appraisal of the timber is necessary if a reasonable method is used to determine the DOD value.

[WITAXLADY]

I am not against some sort of informal appraisal- she has friends!

This is the Great Northwoods! as she needs to log off every year to pay the property taxes..

So getting an estimate of years growth would give a good foundation.

 

Thank you, D