sale of land from a trust

[lo92677]

My client and her two siblings sold some property 20 years after parent has passed.

I use parents date of death as purchase date of land and the appraised amount as cost/purchase price.   is this correct   I feel I am missing something.

[IRonMaN]

If the land went into the trust after the parent's date of death and you are using that appraisal from 20 years ago, it sounds like you are on the right path on the yellow brick road.  Just watch out for flying monkeys and you should be ok.

[BobKamman]

Not enough information about the trust to answer.

I would say there's a 95% chance that this was a typical revocable living trust with assets that got stepped-up basis when the second spouse died.  But I'll give it a 5% chance that it was an irrevocable trust, perhaps set up by the grandparents in 1949, to pick a year at random.  I have clients who are selling assets from an irrevocable trust, established in 2006, when the husband died.  The income went to the wife, but the principal now goes to his two kids from a prior marriage.  It doesn't include any Amazon stock, but if it did we would have a large capital gain.