Question about Getting Appraisal to figure out Step Up Basis for tax return

[Zoe]

A retro report is doable. The oldest one I've ever done was 1969, which I did some 30 years later. That is very difficult. But a retro in the past 5 years is generally as easy as if today. You might pay a small premium over a current report. You also need to make sure the appraiser does NOT use lending forms. The IRS has an explicit "Fair Market Value" definition. Also, your tax attorney and or CPA should be giving you guidance and they should know an appraiser who does those kinds of reports.

Most such reports are never reviewed by the IRS, they are simply a support in the event the IRS was to audit same. I do a lot of those in the course of my business and they are typically the best job out their in terms of ease of doing and liability. In 30 years, I've never been audited by the IRS over it.

The retro appraiser will need interior condition as of DOD or whatever date IRS or CPA tells him.

Relatives or the person can be good sources of interior condition at time of death for the appraiser vs sale date. The appraiser needs some source for interior condition at DOD or use extraordinary assumption.

 

[Zoe]

I would hire a CPA on this one and get them to hire the appraiser. You can give your CPA bids if you call some appraisers and get bids.

 

[Zoe]

Here is key with IRS. They want any possible capital gain or capital loss. That's your problem. Qualified appraiser solves that problem with you and anybody else on inheritance.

I am not an accountant.

 

[Zoe]

Okay, let's go back. Your sales price will set any possible capital gain or loss. I am not an accountant.

 

[Zoe]

I am totally assuming you don't owe any inheritance or estate tax. Like I have repeated, I am not an accountant. I am a little old appraiser.

 

[Fernando]

Call a number of appraisers to see how much they charge and tell them the situation.
Assuming prices haven't changed that much from time of death and property sold, the sold price is a good starting point for the appraiser to appraise. Some appraisers like that.