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Level 2
posted Apr 28, 2022 5:24:26 AM

Sale of inherited home, taxable value, is it appraised value or market value at time of death?

Hello,

My sons inherited their mom's home, and sold it a year after her death, after improvements.  For taxable value, we determine value of house before improvements.  What's the best way to determine value at the time of death?  Should we look at comparable sales in a 90 day timeframe based on date of death?  Thanks for answers.

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3 Replies
Level 15
Apr 28, 2022 6:34:27 AM

For the sale, the cost basis is the FMV of the property on the date of the original owner's passing, plus the cost of any property improvements paid for after inheritance.

 

Level 2
Apr 28, 2022 6:48:23 AM

thanks Carl.

Level 15
Apr 28, 2022 6:48:34 AM

@STPETEJACK wrote:

Should we look at comparable sales in a 90 day timeframe based on date of death? 

You should at least get a competitive market analysis CMA) from a licensed real estate broker and, preferably, a date of death appraisal from a certified real estate appraiser.