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Raggmopp: "Upon the demise of Mommopp's last living parent [a decade ago] the tobacco farm in KY passed to her and her two brothers with Uncle Ed managing same. Earlier this year Uncle Ed bought out Mommopp and the widow of his brother for cash. Now that there farm has been in the family for who knows how many generations, what mechanism would be used in calculating the cost basis of same, or can the monies Uncle Ed sent her be considered her inheritance in a different form [greenbacks instead of green acerage] and not a taxable event."

No. 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. Gain would roughly be sales price - basis (as adjusted) plus costs of sale.

If the estate of your last to die grandparent had to file an estate tax return it should be on there. In addition, if deprecation/depletion allowance or something similar has been taken the last decade, then the accountant probably has this number.

Having said all of that, I am aware (without knowing any of the details) that there can be special valuation rules for family farms (or maybe even other closely held businesses), which might have come into play.

I suggest that some research is in order, but with any luck it will not be too hard to resolve.

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