Eagle Home Appraisal Long Beach
Step-up appraisals for inherited Long Beach homes
If you inherited a house and may sell it, the value on the date it passed to you can decide how much of the sale is taxable gain. A good record made now can save a hard conversation later. Call and we will talk about the date and the paperwork.
This is the basis question: what the house was worth then, not what it would bring today.
What basis is, in plain words
Basis is the starting number a tax return uses when you sell. Inherited property generally takes as its basis what it was worth on the date of passing (IRS: gifts and inheritances). A good record made now can save a hard conversation years later. The appraisal supports a value. It does not settle a tax outcome, and we cannot promise how the IRS will treat it.
A California detail worth knowing about
California is a community property state. When one spouse passes away, federal rules for community property can adjust the basis of both halves of the house, not only the half that belonged to the person who passed (IRC section 1014(b)(6)). That can matter a great deal to a surviving spouse who later sells. Your tax adviser can tell you how it applies to your family, and we will value the whole house as of the date they name.
Two different numbers that are easy to confuse
California also tracks an assessed value for property tax, and Proposition 19 changed when a child can keep a parent’s lower assessed value (State Board of Equalization). That assessed value is a tax record. The federal basis is a value as of the date of passing. They are separate questions with separate answers, and this appraisal speaks to the second.
Looking back to a past date
If the house passed to you a few years ago, a report can still be built for that date, from the sales and conditions of that time. Dated photos, listings, repair bills and the county record for the address help us describe the house as it stood.
What to have ready
The address, the date of passing, whether you are an heir or a trustee, and the date you may sell. Call, and we will talk about the paperwork.
A few questions that come up.
What is a step-up in basis?
Inherited property generally takes as its basis its fair market value on the date of passing. A later sale above that basis is a taxable gain. Your tax adviser can confirm how it applies to you.
Can you tell me how much tax I will owe?
No. An appraisal supports a value. It does not settle a tax outcome, and acceptance by the IRS cannot be promised.
Eagle Home Appraisal Long Beach