Have a new client whose husband died in 2000. Many years prior to his death, they purchased a home for $20,000. Now is 2005, she sold home for $600,000. She did not get an appraisal on the home in the year 2000 when husband died so she would know what the stepped up basis would be. They live in California, a community state. How can she now determine what home was valued in 2000??
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peggysioux -
Vaulation of Home
What was the value of home for real estate tax purposes at that time?
Also, you could possibly find a realtor who might know something. -
Isn't the main question on how the stepped up basis works? It seems to me in a community property state the value at date of death is used for the entire property not just one half.Comment
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Sales of Residence - Deceased Spouse
Main question would be what documentation would be acceptable by IRS as to valuation of property being property was not appraised at time of death. If client felt FMV was higher than what property tax bill showed, what other documentations would be acceptable.peggysiouxComment
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I had this same thing arise a couple of years ago. I had the client get an appraiser who would appraise the property and determine it's appraised value at the date of death of the spouse - which was about four years prior. The client then had the appraisal in hand and we were able to avoid tax on the capital gain.Comment
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