What is the date range to estimate a FMV for real property before filing year

[coconutwind]

for deceased owner

[ThomasM125]

You can take up to one year from the due date of the relevant tax return to determine the valuation of estate property.

Normally, you need to use the fair market value at the date of death, or date the property is transferred. However, you have an option to choose an alternative valuation date if the value of the estate decreases after the date of death, but for no more than six months from date of death/property transfer. You have up to one year from the due date of the tax return to determine if you want to use the alternative valuation date. Since a tax return may be due before that, this often entails filing an amended return. 

[coconutwind]

Thanks Thomas for the answer you gave. Sorry, I did not make my question very clear.

We have a vacant lot of land (real property) that was forgotten and found last year. The inheritor died in December 10 years before the property was found. We are attempting to value the home in the year of death. Vacant land in this city area is almost non-existent and therefore few sales can be located around the date of death.

Question: should have been:

Does the IRS have a date range before and after death that can be included to value the property?

I can find no land sales from Jan to Dec in the year of death. I find sales scattered through out the year after death. The sales months are (year after death) March (1 sale), Aug (1 sale), and November (1 sale).   

[DianeW777]

Question: Does the IRS have a date range before and after death that can be included to value the property?

No, the date of death is when the fair market value (FMV) is to be determined.  However, as indicated by @ThomasM125, there is an option if the value decreases after death.  The sale in March, following the year of death would be a reliable indicator of value on the date of death, assuming the sale was at or above FMV and not sold below market .  A suggestion would be to speak with the county clerk using the tax records or a realtor who has knowledge in this area.

One other reference can be used if the actual property inherited was sold:  US Code Section 2032-Alternate Valuation

In the case of property distributed, sold, exchanged, or otherwise disposed of, within 6 months after the decedent's death such property shall be valued as of the date of distribution, sale, exchange, or other disposition.  

[Anonymous_]

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@DianeW777 wrote:

One other reference can be used if the actual property inherited was sold:  US Code Section 2032-Alternate Valuation

In the case of property distributed, sold, exchanged, or otherwise disposed of, within 6 months after the decedent's death such property shall be valued as of the date of distribution, sale, exchange, or other disposition.  

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The alternate valuation date is an election and cannot be used unless both of the following are true:

1) The election decreases the value of the gross estate; and

2) The election decreases the amount of estate tax (which would only apply to estates large enough to be subject to estate tax).

See Section 2032(c)