@Bsch4477
That answer assumes a stable real estate market, which may not be the case in some markets. Values in my area were supposedly rising several thousand dollars per month last year; they may be falling as fast now. If there is a significant discrepancy between the appraised value and the selling price, it is up to the taxpayer to prove the appraisal was wrong, and this may be difficult to do. Ignoring the appraised value should only be done when you have a professional to stand behind you if you are audited.
That said, even if there is a price increase, the real estate commission and other closing costs that are allowable as adjustments may negate any gains. But like 10th grade algebra, you have to show your work to the IRS.
