When my father died, the estate attorney advised me to have my parents’ home appraised for the step-up in dad’s half of the basis.
I would advise you to do the same. A realtor is almost guaranteed to provide a higher FMV than an appraiser. For gift tax purposes, you’d prefer a lower value.
they don't have to accept any valuation by anyone pro or not. they do have auditors that specialize in valuations.
as to appraiser or realtor, take your pick.
know that FMV may be meaningless if the property is sold because in many cases original basis is used to determine taxable gain.
Column D. Donor's Adjusted Basis of Gifts
Show the basis you would use for income
tax purposes if the gift were sold or
exchanged. Generally, this means cost
plus improvements, less applicable
depreciation, amortization, and depletion.
For more information on adjusted
basis, see Pub. 551, Basis of Assets.
....s it a requirement to get an appraiser, for gift tax purposes.
I will provide a link (below) to the relevant Treasury Regulation concerning the method used to determine the fair market value of property transferred. In particular, read Section 301.6501(c)-1(f)(3) and then you decide.
Thx. May take some time to see how this would apply to my situation.
In sum, it states that if you do not use an appraiser, you need a very detailed description of the method used to determine the fair market value of the property transferred.