Question

House value in estate filing

Forum|Forum|2 years ago
March 9, 2024
2 replies
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In filing form 1041 for my grandma’s estate I need to account for the sale of the house. My grandma passed in October 2022, the house was appraised in May 2023 with the house sale closed in June 2023. For the stepped-up basis of the house, is it permissible to use the appraised value of the house? If not, how do I determine the value?

Thanks in advance!

TurboTax Business Windows

M-MTax

Get a date of death appraisal from a licensed appraiser in the area. That would be the FMV of the house in October of 2022.

E

esskayy27Author

Okay, thanks!

D

DianeW777

It depends. If the appraised value is very close to the selling price then you are safe to go with either one. It would seem there would not be a real difference between the date of death and the sales date. Since the appraisal and the sale were so close in time, I would be inclined to use the selling price which is the most accurate.

As indicated by MMTaxMM, the actual fair market value on the date of death is the rule, but you do have both the appraisal and the actual selling price you can count on as a good fair market value very close to the date of death. The only real factor would be if the market in that geographic area had a huge swing in real estate (high or low) in those few months.

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