Birmingham, AL appraisal service
What was this property worth on the date of death, and how is that supported?
A step-up or date-of-death assignment is retrospective work. The effective date is in the past, sometimes well in the past, and the analysis has to rely on what the market and the property actually looked like then.
IRS Step-Up & Date-of-Death Appraisals in Birmingham, AL
This page describes how that value opinion is developed. It is not tax advice, it does not calculate anyone's basis, and it does not tell you what to report. Those questions belong with your CPA, enrolled agent or attorney.
Who this is for
People who typically order this appraisal
- Heirs or representatives whose tax preparer has asked for a value as of a date of death.
- Trustees documenting the value of real property held in a trust as of a past date.
- CPAs and attorneys who need retrospective real property support for a client's filing.
- Anyone told they need a "retrospective" or "as of" appraisal.
What affects the value
The details that move the analysis
Market conditions on the past date
The analysis relies on sales and listing evidence from around the effective date. Later market movement is not applied backwards to the earlier date.
Recorded property characteristics at the time
Living area, year built, lot and recorded improvements are checked as they stood, since later permits or additions can change the recorded picture.
Documented condition then
Photographs, listing archives, insurance records and repair invoices from near the date carry real weight when the property has since changed.
Stated assumptions
Where evidence of past condition is thin, the report says so plainly and identifies the assumption made, rather than presenting a guess as observed fact.
What to gather
Have this ready before you call
- The exact effective date required, and who specified it.
- The parcel number and legal description if available.
- Photographs or video of the property from near that date.
- Any prior appraisal, listing sheet or MLS printout from that period.
- Records of work done before and after the date, so the two can be separated.
- The name of the preparer or advisor who will use the report.
How the process works
From first call to written report
Confirm the retrospective date
The effective date and intended use are fixed at the start, since everything else follows from them.
Assemble historical evidence
Property records and market data from around that date are gathered, along with any documentation you can supply.
Inspect the property as it is now
The current inspection is combined with historical evidence to describe the property as of the past date.
Analyze and reconcile
Comparable evidence from the relevant period is analyzed, with reasoning and assumptions written out.
Deliver the written report
The report states the retrospective effective date, the data relied on, and the limitations of the analysis.
Questions
Frequently asked about irs / step-up appraisals
- How far back can a retrospective appraisal go?
- It depends on the evidence available for that period and for that property. Call with the date and the address and we can talk about what documentation would be needed before any commitment is made.
- Will you calculate the stepped-up basis or the tax owed?
- No. This is a real property value opinion for a stated past date. Basis calculations and tax reporting are the work of your tax professional, who uses the value as one input.
- The house has been renovated since the date of death. Is that a problem?
- It is common and it is workable. The renovation is identified and the opinion is developed for the pre-renovation condition, using photographs, permits, invoices and your description. Where something cannot be verified, the report states the assumption.
Preparing documents first? Read the property records and preparation guide.
Discuss your irs / step-up appraisal in Birmingham
Call and describe the property, the effective date you need and who will use the report. Scope, timing and availability are settled on the call, not promised in advance.