Another Ethics Question

[ChEAr$]

>>Do you by chance have a copy of the 900,000 appraisal? And can you verify that the
appraiser was certified by whomever and competent? If both both yes, I see no problem with the figure for the 1041<<

Harlan, would you have a problem with the $900K if he DOESN'T have a copy of the appraisal?
Are you saying that your position rests, not on principles applied to a set of facts, but on the preparer's need to audit and verify the client's records?

Yes, there's a problem, and now we know there was no qualified appraisal unless the
real estate broker is a licensed appraiser and actually wrote one up and signed it.
Evidently not the case.

With a figure this material, I want to protect my client by seeing a written appraisal.
I owe it TO my client to keep him out of trouble.

ChEAr$,
Harlan Lunsford, EA n LA

[Unregistered]

If special use valuation was elected there is a box to check on the 706 and I imagine the state form has a similar box. Assuming the state follows federal rules the sale disqualifies the property for that method. So if that was the case then there will be a procedure to pay the extra tax and then the .900K value is good for the 1041.