jasdlm Posted March 28, 2016 Report Share Posted March 28, 2016 I'm struggling. Child was the remainderman on a life estate in a feedlot. The value at the date of death of the grantor was 73,000. Basis in 1245 property on the lot was $34,000 with accumulated depreciation of $5,500. Life Estate owner gifted his interest to the child in 2015. (Grantor died in 2008.) I'm not completely sure how to classify a feedlot. I have one sales price of $150,000 not assigned to land vs. equipment/improvements (it was sold at auction). Would a feedlot, given all that it takes to maintain it, be 1252 property (If I'm suggesting something really stupid, please don't flip out.) Would I simply take the entire sales price, basis, and recap on 1 column of the 4797 and code it 1252 property? Should I attempt to split out the sales proceeds based on the basis amounts and list 2 separate transactions for the sale? Other 'best practice' ways to report? Any thoughts or guidance is truly appreciated. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 29, 2016 Report Share Posted March 29, 2016 Not 1252 property. That is farmland for which soil or water conservation expenses have been deducted and are recaptured on form 4797. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 29, 2016 Author Report Share Posted March 29, 2016 Thanks very much. I appreciate it. Quote Link to comment Share on other sites More sharing options...
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