From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Revision as of 19:15, 7 July 2009; view current revision
←Older revision | Newer revision→
Discussion Forum Index --> Advanced Tax Questions --> Determining FMV 12 months after DOD
Discussion Forum Index --> Tax Questions --> Determining FMV 12 months after DOD
BobNN (talk|edits) said:
| 3 July 2009
|
| I have just been engaged to prepare an Estate Tax Return for a decedent who died in June 2008. The initial personal representative was removed by the court for being incompetent and it is the successor personal representative who hired me. The decedent owned a 50% interest in a condominium (JTWROS with a sibling). No appraisal of the property was obtained by the original P.R., but the property was sold in an arms-length transaction 10 months after the date of death. Is ten months within a "reasonable period of time" for purposes of establishing the FMV of the property? If not, how do you suggest resolving this problem? Alternative value will be elected for this estate, and the real property accounts for only about 4% of the total estate.
|
Lhhesscpa (talk|edits) said:
| 3 July 2009
|
| I ordinarily recommend that the PR get a market analysis as of the date of death. In your case, the opinion would be as of the alternate valuation date (assuming that's what you mean by "alternative value.") If you're using that date just because an appraisal or other valuation wasn't done closer to the date of death, I assume you're aware that the alternate valuation date must be used for all estate assets. -- Larry Hess, CPA | Albuquerque, NM
|
BobNN (talk|edits) said:
| 7 July 2009
|
| Thanks. Yes, I'm familiar with the alternate valuation date rules. In this particular case there is a decrease in the value of the Schedule B assets of almost half a million dollars. This will drop the taxable estate well below the level at which any taxes would be due (no matter what value we use for the real property). I just want to avoid any issues that would flag the return for examination.
|
