Discussion:Estate-asset valuation no DOD appraisal
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Estate-asset valuation no DOD appraisal
Discussion Forum Index --> Tax Questions --> Estate-asset valuation no DOD appraisal
ReadMyLips (talk|edits) said: | 22 September 2008 |
| I am preparing a 1041 for an estate that was under $2m, so no 706 was required. Client died 3/1/07 and her home was sold on 7/1/07 for $1m. There was no formal appraisal as of DOD; since the home was sold close to that date, and the market was fairly consistent at that point, I was going to use the sales price as the DOD value. There was about $100k in closing costs that I was not going to take as a deduction (would result in a $100k loss). Does this sound reasonable/correct? Any similar experiences? | |
| 22 September 2008 | |
| [try this search first] | |
| 22 September 2008 | |
| Discussion:1041 and Loss on residence and expenses and this | |
ReadMyLips (talk|edits) said: | 22 September 2008 |
| Ok thanks for the links, I think it's pretty clear that this property was not converted to income producing property, so no loss.
Thanks Kevinh5. | |
| 22 September 2008 | |
| In the 1998 SCA, the IRS didn't say 'no loss', they said that the loss belonged to the beneficiaries. | |
ReadMyLips (talk|edits) said: | 22 September 2008 |
| Well, since there was no DOD valuation, we don't have an exact value--is it the $1m or the $1m - $100k? Or something else?
In this case the beneficiary is a trust. I will look at 1998 SCA again. http://www.irs.treas.gov/pub/irs-sca/1998-012.pdf Thanks. | |
| 22 September 2008 | |
| States vary. There may be an estate tax for the state, even though there is no federal tax. | |
| 22 September 2008 | |
| Since the sale date was close to the dod, I'd say there no gain or loss. The net sales price is the FMV. | |
| 22 September 2008 | |
| Can you call the bank and tell them that there was no change in market value from 3/07 to 7/07? | |
WIBadgerCPA (talk|edits) said: | 22 September 2008 |
| I would use the sales price as FMV. I wouldn't use the net sales price. Selling cost are just that, selling cost. The FMV shouldn't change depending on the amount of the selling cost. | |
ReadMyLips (talk|edits) said: | 22 September 2008 |
| CA doesn't have an estate tax, so that's ok. The immediate beneficiary is a trust; the assets will eventually go to Canadian residents.
If there was an actual DOD appraisal I would say yes to deducting the selling costs. But since it's an estimate, I'm not sure that's appropriate. | |
To join in on this discussion, you must first
log in.
