Comments on: Inherited money from property sold with gas production. Suggestions on how to minimize tax? http://taxlieninvestingnews.com/questions-and-answers/inherited-money-from-property-sold-with-gas-production-suggestions-on-how-to-minimize-tax/ Current news on Tax Lien Investing Tue, 22 May 2012 07:19:08 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: v b http://taxlieninvestingnews.com/questions-and-answers/inherited-money-from-property-sold-with-gas-production-suggestions-on-how-to-minimize-tax/comment-page-1/#comment-44 v b Thu, 30 Apr 2009 18:40:33 +0000 http://taxlieninvestingnews.com/questions-and-answers/inherited-money-from-property-sold-with-gas-production-suggestions-on-how-to-minimize-tax/#comment-44 If the gift was completed over a decade ago, it wasn't inherited. Even you put "inherited" in quote marks. It is long term capital gain. In 2008, some of this is taxed at 0% (if the gain plus other income is less than the 15% tax bracket) and the rest at 15%. If these grandchildren are under the age of 24, the taxes may be charged at the parents' rate. The basis of the gift would be the giver's basis at the time of the gift LESS any depletion claimed since then. (It's even lower if the FMV was less, but I doubt that's the case.) You would use the amounts shown on the gift tax form filed in the 1990s (was there one?). If the gift was completed over a decade ago, it wasn't inherited. Even you put "inherited" in quote marks.

It is long term capital gain. In 2008, some of this is taxed at 0% (if the gain plus other income is less than the 15% tax bracket) and the rest at 15%. If these grandchildren are under the age of 24, the taxes may be charged at the parents' rate.

The basis of the gift would be the giver's basis at the time of the gift LESS any depletion claimed since then. (It's even lower if the FMV was less, but I doubt that's the case.) You would use the amounts shown on the gift tax form filed in the 1990s (was there one?).

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