leftDate of Death Valuations

Estate tax liability. Disposition of assets under a will or in probate. There are many situations -- none of them lacking stress and complexity -- where you might need an appraisal of Real property that states a professional opinion of value on a past date, rather than when the appraisal is ordered. For estate tax purposes or disposition of the assets of a decedent, a "date of death" valuation is often required. (Sometimes, the executor of the estate may choose to have the date be six months after the date of death -- but the same principles apply.)  These types of appraisals are also known as "retrospective" appraisals or "historic value" appraisals.

It is usually in an estate's best interests to get a "date of death" appraisal in order to take advantage of a Step-Up in Basis
Step-up in basis refers to the adjustment in the cost basis of an inherited asset to its fair market value on the date of the decedent's death. Cost basis is what determines the taxes owed, if any, when the asset is sold. Cost basis starts with the price paid for an asset, plus any additional costs added over time to improve or maintain the original asset. Step-up in basis, or stepped-up basis, is what happens when the price of an inherited asset on the date of the decedent's death is above its original purchase price. The tax code allows for the raising of the cost basis to the higher price, minimizing the capital gains taxes owed if the asset is sold later.

 

Attorneys, accountants, executors and others rely on Correct Appraisals for "date of death" valuations because such appraisals require special expertise and training. They require a firm that's been in the area for some time and can effectively research contemporaneous comparable sales and market conditions.

We are fully IRS compliant and understand the specifics of what the IRS and CA state tax agencies require.

 

Real property isn't like publicly traded stock or other items which don't fluctuate in value very much or for which historical public data is available. You need a professional real estate appraiser bound by the Uniform Standards of Professional Appraisal Practice (USPAP) for a high degree of confidentiality and professionalism, and you need the kind of quality report and work product taxing authorities and courts require and expect. 

 

The cost of an appraisal from us for most single family homes and condominiums is $390. The results of any appraisal you order from us are strictly confidential and will not be shared with the public or any governmental institution (ie. your tax assessor) unless you request it.