Step-Up in Basis Appraisal can save thousands in tax liability

The most common appraisal I perform outside of a loan is a Step-Up in basis. This report can save THOUSANDS for those who have recently inherited property. A step-up in basis appraisal resets the properties value to its fair market value as of the owners date of death. This means that when the property is eventually sold capital gains taxes are calculated based on the updated value rather than the owners original purchase price. Let me give you a quick example…

Lets say your parents bought a home 30 years ago for $200,000. This homes updated fair market value as of the owners “date of death” is $800,000. A year later you sell the home for $900,000. With a step-up in basis appraisal the taxable gain is on that $100,000 (AMAZING!) and without a Step-Up in basis appraisal you will be paying taxes on that $700,000 of gains from the original purchase price (UHG!). As you can see this report is essential for you or anyone you know who has recently inherited a property. I hope this helps!