Inheriting Land with family member

[Patrick Martone]

My cousin and I are inheriting land purchased in an llc. The members of the llc are my father and aunt. There are three lots and they want to divide it up and dissolve the llc.

My father owns a greater equity of the lots, but my aunt pays half the taxes (which are more than her equity stake).

One lot has a farmer on it, the second has trees (to be logged), and the third is a roadside lot (possible house or farm?)

Unfortunately the farmer’s rent barely pays the holding costs.

This property is in rural N. Carolina and I live in New York. My father is telling me to just pay the holding costs and keep it. I would only keep it if I could find a way for it to become an income source.

Which of the 3 lots would you claim?

How should I work this out with my cousin?

How can I make this a real income property?

How can I value it out?

What would YOU do?

It is on the outskirts Elizabeth City, NC and zoned for agriculture, and i guess residential. I don’t have a physical address, but I have the MAP number, RECORD number, and ACCOUNT number from the Tax statement 

[Account Closed]

Originally posted by @Patrick Martone:

My cousin and I are inheriting land purchased in an llc. The members of the llc are my father and aunt. There are three lots and they want to divide it up and dissolve the llc.

My father owns a greater equity of the lots, but my aunt pays half the taxes (which are more than her equity stake).

One lot has a farmer on it, the second has trees (to be logged), and the third is a roadside lot (possible house or farm?)

Unfortunately the farmer’s rent barely pays the holding costs.

This property is in rural N. Carolina and I live in New York. My father is telling me to just pay the holding costs and keep it. I would only keep it if I could find a way for it to become an income source.

Which of the 3 lots would you claim?

How should I work this out with my cousin?

How can I make this a real income property?

How can I value it out?

What would YOU do?

It is on the outskirts Elizabeth City, NC and zoned for agriculture, and i guess residential. I don’t have a physical address, but I have the MAP number, RECORD number, and ACCOUNT number from the Tax statement 

 First, if they sell there is probably tax on the property that is greater than if you actually inherited the land (graduated cost basis - talk to a CPA)  However, if they insist on selling, you say: "there are three lots and two of you" what happens to the third lot? Option 1) Sell everything and split the proceeds 2) Wait until both father and aunt pass and get the benefit of the graduated tax basis 3) Each take one property and sell the other and split the proceeds 4) If I didn't need the money I would wait until dad and aunt passed, get an appraisal on each property - each keep one property, sell the third and split the difference.  I think I had this question on the SAT test I took to get into college.