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Estate Taxes

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jill haagenson

Freshman Member
Joined
Aug 18, 2003
I have a report due for estate taxes---this is a summary report, correct? When I put in the dates for the valuation -about a year ago...where do I put those dates as opposed to the date I inspected the property?

Thanks
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Using a form? The URAR? If so, the "effective date" in the Reconciliation is the back date they want. In the comments section, 'splain why the inspection date is different than the effective date.
 

jill haagenson

Freshman Member
Joined
Aug 18, 2003
This is a condo- so I am using that form. One of the properties is currently being remodeled- so other than the owners word I have no idea what condition it was in a year ago. What do I do about that????
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Collect the best data you can...... owner, neighbors, project manager, etc. Ask for photos during that time period. Then disclose, disclose, disclose. Let all know what you are assuming and why.
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
use comps prior the effective date.
Date of Death
Date of Divorce
etc... etc
Date of transfer...our office is doing an estate were the mother is 'quit claiming' to the daughter and needs a value for a basis. Smart move for the estate and heirs.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
use comps prior the effective date.
:blink: Thanks Rich! Forgot to point that out.
Just a bit tired...... been fishing all day. Got lots of sun and trout. :) :beer:
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
any good

I was in a casino today and caught baked salmon with tongs!

salmon is 2,000 miles away AT LEAST!
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
use comps prior the effective date.
In a retrospective appraisal, sales occuring after the date of valuation are specifically recognized as part of acceptable and legitiamte practice by:
1. USPAP: see lines 3100 etc.
2. case law precedent: e.g, US v. 312.5 acres
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
The significant statement at 3100 says:

Data subsequent to the effective date may be considered in developing a retrospective value as a confirmation (emphasis added) of trends that would resonably be considered by a buyer or seller as of that date.

I don't think this gives you carte blanche to use subsequent data it just allows that you can consider subsequent data to confirm what the prior data is showing you. While I would never be so nit picky as to say you couldn't use a sale that happened near the date of value but after it, I still don't believe it is good practice. If there are adequate comps available before the date, those are what you should use. None of the people involved in a transfer as of that date could have known about a sale that happened after the date and so they would not have been influenced by it. On the other hand, if the sale after the date of value seems to be showing you the same thing as the sales before, go ahead and use it (assuming there is not an adequate number of comps prior to your effective date).

I agree that it is allowable to use comps subsequent to the date of value. Being allowable does not make it good practice. There are situations where I have done it, but in general I would try to avoid it.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Steve,
You can fiddle with the sematics of SMT-3 all you want in order to align it better with you personal belief that using subsequent data in retrospective appraisals is "not good practice," but USPAP (or your interpretation of it) cannot exclude practice that extensive case law explicity permits. Caution, restraint and reasonableness are needed when using subsequent data, but the same is true for prior data.
 
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