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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Re: Is Mommopp Going To Jail? Date: 5/14/2002 8:36 PM
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<<<<The usual rule is that basis is FMV at date of death (or alternative valuation date if used). Thus, value about "a decade ago" would likely be the basis.>>>>

"Yeah, I was afraid that was gonna be the answer. Anyone out there know what farm acerage around Horse Cave [I'm not making that up] KY was worth in 1990? Didn't think so."

Well, I could not tell you the value of farm acerage around Horse CAve, KY., today, either.

If my earlier suggestions do not help - estate tax return, accountant for farm the last 10 years - I will make a few more. Check the probate records; possibly some inventory and valuation had to be filed with the probate court.

The next suggestions are a little more involved, but an appraiser (and possible a real estate broker) who has been around for at least a decade can probably access value. You might also be able to access old valuations for tax purposes (and make whatever adjustments are necessary to account for local law). If Kentucky has a recording tax
based on the value of property sold, you could calculate price backwards from stamps on deeds circa that time frame, assuming that you nknew the tax rate.

You do not mention any sales prie or value, so it is impossible to guess at how big an issue this might be. LT capital gains rate is 20%, depreciation recpature is 25% (IIRC), not sure whether it being a farm raises other issues.

We can both hope that one of the resident pros will know more than me.

Regards, JAFO

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