The professionals at Neglia Appraisals know a thing or two about Date of Death Appraisals, as we’ve been providing them for over 30 years.
 
Here are a few things we’ve learned that you may find useful:
 

1. When administering a decedent’s estate, prudent fiduciaries aim to achieve the best sale price for inherited real estate while limiting capital gains tax. 
2. The cost basis is the key metric for limiting capital gains tax when selling real estate. 
3. When heirs inherit assets (such as real estate), they can receive a step-up in cost basis if the asset’s value is higher than when the original owner acquired it. 
4. The heirs’ valuation resets to either the value on the Date of Death or the Alternate Valuation Date, depending on the executor’s choice.
5. The step-up in cost basis is achieved by getting an appraisal of the inherited real estate. 
6. The executor can choose to have the real estate valued based on its worth as of the Date of Death of the original owner. Or, the executor can choose to value the real estate six months after the Date of Death; this six-month anniversary is known as the Alternate Valuation Date. 
7. If market prices are rising, similar-property comparable prices will result in a higher appraisal and therefore higher cost basis. Typically, the higher the cost basis, the lower the capital gains tax payable at sale time.

 
Neglia Appraisals is a recognized expert in the provision of trusted Date of Death and Alternate Date property valuations of residential and commercial properties to the New York City community.

For a free consultation with a Neglia Appraisals professional, call the Neglia Appraisals team at 718-331-2122 or click here to contact us.