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You are about to read a contradictory opinion.

First, Your basis in the property you received as a gift is the LESSER of your parents basis or the fair market value at the time of the gift.

Second, the lot is investment property (not personal use property) and therefore, if you sold at a loss the loss is a deductible capital loss. You may deduct the capital loss to the extent of any capital gains you may have in the year of the sale, plus $3,000. Any balance can be carried forward and deducted in future years until expended.
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