What is a date of death appraisal?
When someone passes away a valuation of the descendant's assets, including real estate property, is required. This valuation is necessary for tax purposes. As part of the valuation of assets at death by an estate tax appraiser, a date of death valuation determines the Fair Market Value of real estate as of the date that the owner died. This is known as a retrospective appraisal.
Points to consider when hiring an appraiser for date of death:
1) Who can perform a date of death appraisal? Only a qualified appraiser.
Qualified Appraiser Definition:
- An appraisal conducted in accordance and complies to the requirements and principals of the Uniform Standards of Professional Appraisal Practice (USPAP). Redlick appraisals is current on all state approved classes.
- A appraiser is licensed or certified for the property being appraised in the state of the appraisal. Redlick Appraisals meets this requirement.
- Also See: IRS Bulletin 2006-46, Notice 2006-96
2) Use the IRS FAQ Resource HERE
3) Consult with your CPA