appraisal for gift tax - effective date

[hyr2000]

Hello,

i was contacted by an accountant who needs an appraisal for Gift Tax purpose for IRS. A spouse died last december and the surviving spouse is gifting a duplex to the kids. was wondering what the effective date should be? accountant does not know. i was thinking it should be the actual date of inspection, as the gifting has not taken place yet.

any suggestions?

Thanks,

dan

 

[Mike Kennedy]

.03

Gift Tax.

(1) Section 2512(a) provides that if a gift is made in property, the value thereof at the date

of the gift is the amount of the gift.
(2) Section 25.2512-1 of the Gift Tax Regulations provides that the value of property is
the price at which the property would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or to sell and both having reasonable​

knowledge of the relevant facts.​

 

[Mike Garrett RAA]

That would have been my answer too...the date of the gifting.

 

[PropertyEconomics]

.03

Gift Tax.​

(1) Section 2512(a) provides that if a gift is made in property, the value thereof at the date

of the gift is the amount of the gift.

(2) Section 25.2512-1 of the Gift Tax Regulations provides that the value of property is
the price at which the property would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or to sell and both having reasonable​

knowledge of the relevant facts.​

Thank you Mr Kennedy .. I am working on an assignment just like this and was unable to find the definition of value for Gift Tax purposes. I appreciate your posting this.
The accountant I am working with says the date of the gifting is the date of valuation which also concurs with your findings.

Thanks again.

 

[Taylor Driscoll]

hyr2000

I do several of these... They are always the date of gift. The accountants I have done this for and tax lawyers use the date of the recorded deed. I have had to go back to the early 90s (using old MLS books of sales before the Internet was a name). We have copies of old MLS books going way back... this REALLY helps is searching comps..

Some of the one I have done have been partial interests also, in gift taxes.. But your report date is the date you do it, and the effective date is the date of the deed transfer (just like a date of death appraisal).

good luck

 

[hyr2000]

thank you very much for taking the time...