How to Find "Cost" Basis for Inherited Land prior to 1031 Exchange?

[Richard Benjamin Wilhite]

I inherited 62 acres of land in Middle Tennessee back in 2017. I would like to subdivide the land into smaller 5 acre tracts, sell them, then complete a 1031 exchange.

My CPA asked me what the "basis" in the property is. I understand the concept insofar as if I'd purchased the property, the basis would be what I'd paid it. However, because it was inherited, I didn't pay anything.

So, I believe the basis would be what the value of the land would've been when I inherited it. How do I research or find sales comps from previous years, for example 2017-2018?

Is it simply that I find the average sales price of a 5 acre tract of land within a specific radius of my property in the year that I inherited it?

[Jake Baker]

@Richard Benjamin Wilhite

Since you inherited the land, I believe your cost basis is typically the land's fair market value at the time of inheritance. If an appraisal was done at the time of inheritance (e.g., for estate purposes), that value would serve as your basis.