Selling Land - where to stash $$?

[drunken buddha]

I'm selling the land an Uncle left me, wifey advised me to stash the $$ where I can avoid the tax man. I'm a NOOB at this stuff, so please type slow! It's not much in the big scheme of things, under 35k after some fees. Oh, and I pledged to wifey Lasic surgery, she's been wanting that done for years - but, a nice boost that I'd like to keep as much of it as possible to put it to work. I'm 55 y.o. "mostly retired". Thanks ahead for any advice, you guys rule!

[ShoulderThingThatGoesUp]

Didn't you already pay inheritance tax on it, if applicable? I would only expect to pay capital gains, of which there might not be much, but I have not done much of this so certainly don't take my word for it.

[Mississippi Mudstache]

You can avoid capital gains with a 1031 like-kind exchange, but that would require you to buy an asset of like-kind; so, probably not what you're after.

[drunken buddha]

There was no inheritance tax, just paid property taxes on it for a couple years. The cap. gains tax wouldn't be much? I figured uncle Sam would get a good chunk - like I said, I'm new at such. Will check on that, and will gladly pay it - taxes pay for civilization, which is good.
Thanks for the replies, DW had me afraid I'd lose a 3rd of it.

[ShoulderThingThatGoesUp]

Here's what the IRS says:
To determine if the sale of inherited property is taxable, you must first determine your basis in the property. The basis of property inherited from a decedent is generally one of the following:
The fair market value (FMV) of the property on the date of the decedent's death.
...
Report the sale on Schedule D (Form 1040) (.pdf), Capital Gains and Losses, and on Form 8949 (.pdf), Sales and other Dispositions of Capital Assets:
If you sell the property for more than your basis, you have a taxable gain.
For information on how to report the sale on Schedule D, see Publication 550, Investment Income and Expenses.


I am not a tax professional, but from what you've said I would be anticipating paying only long-term capital gains on the difference between its value at inheritance and the sale price.