What is a Date of Death Valuation?  What is a Stepped Up Basis?

 

Many situations require an expert opinion of what a property was worth on a date in the past rather that on the date the appraisal is ordered. A date of death valuation may be required in calculating whether estate taxes are due.

A date of death valuation is also required for income tax purposes when inheriting a property. When the owner of a property dies, in most cases the cost or basis of the asset for income tax purposes is increased to its fair market value.  This stepped-up basis will be come important when you sell the property because any net amount received exceeding your new basis will be taxable capital gain.  In other words, capital gain is only assesses on the appreciation occurring after the owner's death.

The IRS will accept a professional appraisal in determining fair market value of the estate as of the date of death to establish the new basis. This is also called a date of death value.


Attorneys, accountants, executors and others rely on Ebert Real Estate Services for date of death valuations because such appraisals require special expertise and training.
We understand what is required and can prepare it for you quickly and at a modest cost.

Contact Ebert Real Estate Services to discuss how we can help.