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Deductions & credits
suggestions
- Ask a Realtor what they think it was worth around the date of death
- get on Zillow and they have a property value chart on most propertiess - see what they said it was worth the month of death. It's not the best, but it is better than nothing.
In the end you want something you can 'hang your hat on' should you ever be audited.
if you sold it a short time after the death (say 3- 12 months), it's unlikely it was worth more when you father died and maybe was worth slightly less than you sold it for - that is before sales commission and expenses required to prepare the house for sale which can be added to the value at the time of death (that ultimately reduces your profit / creates a loss, which is to your advantage). A Realtor can guide you towards something that is justifiable should you ever be questioned.