are proceeds from the sale of land my deceased father inherited to be reported as taxable income?
Question Details: My decease father was left real estate(land) by his grandmother. The land is in the Cayman Islands. Are the proceeds from the sale of this land taxable income. My parents immigrated to the U.S. in 1938. My father died in 1976 leaving no will and my 99 year mother is still alive. We want to keep the money in escrow to care for her.
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Yes. The inheriting of the land is not taxable income. But the value of the land when your father inherited it is his tax basis in the property. The difference between that value and the selling price is either a capital gain or a capital loss. A return is due.
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