Common questions about date-of-death appraisals, step-up in basis, and our desktop appraisal process.
A date-of-death appraisal establishes the fair market value of real estate as of the date a property owner passed away. This value becomes the new cost basis for the inherited property under IRC §1014, which can eliminate capital gains tax on decades of appreciation.
The appraisal uses comparable sales and market data from around the date of death to determine what the property would have sold for on that specific date.
When a property owner dies, their heirs receive the property at its current market value rather than the original purchase price. This "step-up" eliminates capital gains tax on appreciation that occurred during the decedent's lifetime.
Example: A home purchased for $150,000 in 1990 is worth $900,000 at the date of death. Without the step-up, selling the home would trigger capital gains tax on $750,000 of appreciation. With a date-of-death appraisal establishing the $900,000 basis, that tax liability is eliminated.
In California, community property rules can provide a double step-up — both halves of a jointly owned property receive the new basis when one spouse passes.
You typically need one when:
There's no deadline for ordering the appraisal, but it's easier when the property hasn't changed significantly since the date of death.
We can perform retrospective appraisals for dates of death going back many years. As long as adequate sales data exists for the time period, a credible valuation can be developed. Older dates of death may require more research time but are not inherently less reliable.
The standard valuation date is the date of death. However, IRS rules (IRC §2032) allow executors of taxable estates to elect an alternate valuation date six months after the date of death if the estate's value has declined.
We can appraise as of either date. If you need both, let us know when ordering.
Yes. The IRS requires a "qualified appraisal" performed by a "qualified appraiser" (IRC §170). The regulations specify qualifications for the appraiser and content requirements for the report — they do not mandate a specific methodology or require physical inspection.
Both our Standard and Basic tiers meet these requirements and are USPAP-compliant.
The only difference is how the subject property's physical characteristics are documented. In a traditional appraisal, the appraiser visits the property. In a desktop appraisal, the client provides photos and property information.
The analytical core — selecting comparable sales, making adjustments, and developing a value opinion — is identical. Comparable sales are always analyzed remotely, never physically inspected, regardless of appraisal type.
We stand behind our work. If the appraiser misinterprets the property's condition, quality, or features based on the photos and data provided, the appraisal will be revised at no additional cost.
Our desktop appraisals are designed for estate, trust, and tax purposes — not mortgage lending. Lender-ordered appraisals have specific engagement requirements that differ from private-party appraisals.
Most appraisals are completed within 5–7 business days after we receive your photos and property information. Complex properties or dates of death requiring extensive historical research may take longer.
All 58 California counties. Desktop appraisals eliminate geographic limitations — the analytical work is performed using MLS data, public records, and market databases that cover the entire state.
Single-family residences and condominiums (including PUDs). We do not cover commercial properties, 2–4 unit income properties, apartment buildings, or vacant land.
We need photos showing the property's condition at or near the date of death:
Smartphone photos are fine. If the property has changed since the date of death, describe what's different and we'll adjust accordingly.
Yes. If you start with a Basic report and later need the Standard format, you can upgrade by paying the price difference. The analytical work carries over — we expand the report format without redoing the valuation.
Place a separate order for each property. Each property receives its own independent appraisal. If you have several properties, reach out to [email protected] for volume considerations.
The completed appraisal is delivered as a PDF via a secure download link sent to the email address you provide. You can forward it directly to your CPA, attorney, or trustee.
California is a community property state. When one spouse dies, both halves of community property receive a step-up in basis — not just the decedent's half. This "double step-up" can significantly reduce capital gains tax when the surviving spouse sells.
Example: A couple bought a home together for $200,000. At the first spouse's death, the home is worth $1,000,000. In a common law state, only the decedent's half ($500,000) would receive the step-up. In California, the entire $1,000,000 becomes the new basis.
Proposition 19, effective February 2021, changed how inherited properties are reassessed for property tax purposes. It does not affect the date-of-death appraisal itself, which establishes fair market value for income tax (step-up in basis) purposes.
However, Prop 19 makes the date-of-death appraisal even more important: it documents the property's value at a specific point in time, which may be relevant to property tax reassessment exclusion claims.