My husband inherited 1/4 of undivided property when his mother passed in 2003. The property at the time was being used for farmland, in the middle of 1,000 of acres and is landlocked. The property was sold in 2009-land contract. The down portion amount was $7,100 (appx 275.00 closing/tax costs). How do we report the sale of the property on our 2010 taxes and how much do we report? Not sure what some of the terms mean on the 6252 and 4797 Forms.

Selling price = the price agreed in the 2009 land contract

Cost or other basis of property sold= the fair market value at the time your husband inherited it

depreciation = $zero. Raw land doesn't depreciate.