Taxpayer sold farm to son. Son could not handle it and sold it back to parents. Parents put farm in trust. Parents passed away and trusts instructs farm to go the all 6 kids.(including one who bought and resold to Parents. Now kids have sold the land to an unrelated buyer. What is kids basis.

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Simple answer, basis is Fair Market Value (stepped up basis) at date of last parent death when kids become beneficiary owners of the trust assets.

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The basis is the parent's basis at the time the farm went into the trust, if the trust was not a grantor trust.

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>>if the trust was not a grantor trust<<

Even jainen doesn't know what kind of trust this was. And she's also mighty suspicious of that sale and buyback, a classic maneuver to jack up basis.

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READ THE TRUST DOCUMENTS.

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Agree with trust documents. I am assuming this is not a irrevocable trust. Basis adjustments for sale and buy back (parent's basis) are irrelevant as on date of death the FMV becomes the basis for the beneficiaries.

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