Hi @IRonMaN always glad to get your two cents, and like your hypothetical example His basis is not zero. Unfortunately the client did not get a basis shortly after he purchased it like the following example, but he can get a basis if desired.

Here is an example for a likely scenario for this client we are discussing:

Joe Smith paid $23,000 for 35 acres of timberland in 1982. He also paid $800 for legal
fees and other costs to acquire title to the property. He determined the basis of the timber shortly after
buying it. The timberland itself, not considering the timber, had an approximate fair market value
of $350 per acre in 1982. The total fair market value of the land was therefore $12,250. There
were approximately 63 MBF1 of average quality timber on the land in 1982. The value of timber in
1982 averaged $200 per MBF, giving a total value of $12,600 for the timber. The basis of the timber is determined by calculating the percentage of the total fair market value attributable to the timber and applying this percentage to the total acquisition cost. The total fair market value of $24,850 is the sum of the fair market values for the individual assets $12,250 for the land plus $12,600 for the timber. The timber accounts for 51% of this total ($12,600 divided by $24,800). The basis of the timber is $12,068, 51% of the $23,800 acquisition cost (0.51 x* 23,800). The basis of the land is $11,732, 49% of the
$23,800 acquisition cost (0.49 x* 23,800). The sum of the two percentages is 100 and the sum of the
two bases is $23,800, the acquisition cost.