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| I am not confident in the advice of my CPA. It is too late to find someone else so here is the problem. I inherited some ground from my parents. I own the ground but they left my brother a lifetime interest in the ground. He gets all of the farm income from this field and pays all of the expenses.. It has a very large sand ridge. We decided to sell the sand in March of 2024 and split the money 50/50. I asked my CPA how it would be taxed. She did not know but would research it and get back to me. She said that it would not be counted as income but it would be counted as a depreciation on the ground. Since my brother got the crop income he would count it as taxable income. I just talked to her to find out when she would have my taxes done. She now states that I would probably need to count it as taxable income. She is not sure whether it is taxable income or depreciation so I will pay taxes on it to be safe. Problem is my wife has been extremely ill for several years. I quit farming in 2018 to take care of her. She died in December of 2024. We used the money from the sale of the sand to live on last year so I could stay home and take care of her. So that is the problem. I used the money to care for my wife because my CPA told me last March that I would not pay taxes on it. Now she is not sure so she will count it as taxable income which means I have to come up with the money for the tax. Any opinions on whether it is taxable income or a depreciation? I live in Arkansas if that matters. | |
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question for a CPA (or anyone else)
