[dolowe]

What is the tax issue on an inherited property is you take a onetime payment of 2.0m or a down payment of 500,000 and an additional payment upon the sale of each tract by the developer. Which payment option would produce the more favorable after tax result for the inheritor and not the buyer.

[ebaines]

First, you need to understand that your cost basis on inherited property is equal to the fair market value of the property on the date of death of the person you inheritedit from. The executor of the estate should be able to tell you what that figure is, if you don't already have it. That in turn will determine whether the sale of the property will generate a capital gain or loss for you.

As for whether it's best to take $2M up front or sell the property piece meal - this depends on whether the sales will generate a apital gains for you. If you don't need the cash from the sale up front, then by spreading the sale out over more than one tax year you will spread out any capital gains taxes you may owe on the sale. Depending on your financial sitiuation this may have the advantage of keeping you in a lower tax bracket than if you recognize the gain all at once. Not knowing any thing else about your financial situation - it's impossible to give any firm advice on this.

[AtlantaTaxExpert]

I agree with ebaines; the complexity of your situation makes any advice given on this forum suspect becase of lack of knowledge on your overall financial and tax situation.

Given the money involved, you can afford to seek the advice of an experienced CPA, so go find one and make an appointment.