You get a step-up in basis that will help you save on taxes.
of the appraised value of the land when your husband passed away back in 2008, said Patricia Daquila, a certified financial planner and certified public accountant with Peapack Private Wealth Management in New Providence.when you purchased the land back in 1968, she said.Let’s say you originally paid $10,000 in 1968 for the land. When your husband passed away in 2008, the appraised value of the land was $100,000.
She said the tax rate on most net capital gains is no higher than 15% for federal tax purposes unless your taxable income is higher than $40,400 but less than $445,850 for single individuals or more than $80,800 but less than $501,600 for married couples filing jointly.If you’re not sure of the specifics in your case, consider checking with a tax advisor.