Valuation of inherited California property at time of death?

[MissMadge]

California proposition 19 applies to my situation. My mother put her senior condo into a trust and I am the sole beneficiary. 

My mother bought condo for $250k. It is selling (god willing) for $200k, thanks to Covid.

How does the IRS and California determine FMV at time of death? Is it $250k or $200k? I would like to use the loss against my own personal tax liability. Is that possible or only applicable in an estate tats return?

Thank you.

[Critter-3]

No matter what she paid the FMV at the time of death is used ... get a quote from your RE agent if the market has changed since the DOD otherwise if you sell within a year of death usually the sales price is the FMV.

[tagteam]

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@MissMadge wrote:

I would like to use the loss against my own personal tax liability. 

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That would only possible if the property is being held as an investment, and not for personal use.

[Mike9241]

The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision

 for real estate often what's used is comparative market value. what similar property in the area recently sold for. 

[tbrown21]

If you never used the home personally after you inherited it, the IRS considers it an investment, and you can take a long term capital loss