What are the tax implications for two brothers who sell land they own together?
My husband was given 11 acres of land by his deceased aunt many years ago. Several years before we married, he added his brother to the deed to insure it would remain in the family. After we married, we have paid the property tax on the property for the last twenty years. The two brothers have now decided to sell the land. The question is what do we have to report in income and who must report it? For inherited properties, do you take the value it sold for minus the value when it was when it was inherited, and if so, how do you determine that value from many years ago? Also, do the brothers pay the tax upfront and then split the proceeds, or split the money and each report their half as income?
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