Father died in 1968. Mom died in 2006. Lot of land in dad's name only. Sold land from estate, capital gain is passed along to beneficiaries in Schedule K-1 for difference between sale price in 2007 and value of land in 1968. Correct?
by 
Stephanie
ANSWERS: 1
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No. Two things about valuation. The value of an estate is the value at the time of death. The value of the estate is subject to death taxes. Heirs get the property with a new basis: the value of the property at the time of death. Your mother inherited the property in 1968. It has a different value in 2006. Your mother's estate may be subject to death taxes, but there is a new basis: the value in 2006. There probably has not been much change over the last year, so the difference in price should be fairly minimal.
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