The Wagner Difference
REAL ESTATE APPRAISALS for ESTATE (DATE OF DEATH/RETROSPECTIVE APPRAISALS), GIFTS, and DONATIONS THAT MEET INTERNAL REVENUE SERVICE (IRS) STANDARDS
There are many situations where you need an experienced, qualified, and certified appraisal expert to determine the retrospective "Fair Market Value" (FMV Appraisal) of real property. Perhaps it is in your estate as of the date of death; or when gifting property; or donating a property.
Many estates consist of a portfolio of commercial, industrial, and residential
real estate need to establish stepped up real property tax basis for IRS
tax filing purposes. Determining fair market value of your estate as of
the date of death can establish basis. In addition you may need a valuation
expert to determine the appraised value of fractional ownership interests
of the estate.
Any opinion of value (appraisal) prepared by a certified residential
real estate appraiser for use in planning an estate and in documents filed
with the revenue authorities, should be well supported by a detailed report
as to how the appraiser arrived at his conclusions. Such a report should
demonstrate to the user that the appraisal is well founded, substantiated,
and meets with Treasury Regulations and state agency requirements. It
is also wise to avoid submitting an appraisal that is more than two years
old and one that does not meet other specific IRS guide lines. Additionally,
the IRS looks at the accreditation of the appraiser, the rationale of
the "Fair Market Value" opinion, the validity of the comparable
research, and the overall professionalism of the appraisal report.
Often, the date of death (Effective Date of the Appraisal) differs from
the Date of Inspection and the Date of the Appraisal Report. As designated
experienced real estate appraisers we are familiar with the procedures
and requirements necessary to perform residential appraisals that match
the retrospective effective date of value.
Because multiple listing services often purge data after a period of
time, if the effective date of an appraisal is over 3 years the appraiser
must be aware of other residential data sources and how to utilize those
data sources to obtain verifiable comparable sales information.
Taxpayers may be liable for additional penalties if the valuation does
not adhere to IRS
Real Property Valuation Guidelines. Penalties can range from approximately
20% to 40%. In preparing an appraisal for estate tax return filing purposes
the IRS requires the appraiser to follow IRS
Real Property Valuation Guidelines and specific
appraisal guidelines. In addition, it is also important to provide
a well documented home appraisal with the appropriate valuation techniques.
In some cases, this could mean the difference of whether or not the respondent
is required to pay additional estate tax. Moreover, if the estate tax
is later challenged in a court of law, the appraiser must be qualified
to testify as an expert witness on behalf of the respondent.
Please contact Alvin
“Chip” Wagner, SRA, SCRP for residential real estate appraisal
needs, and we will be able to refer you to qualified certified general
real estate appraisers for commercial and industrial properties, as well
as personal property appraisers.