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Thomas McJD
Thomas McJD, Attorney
Category: Estate Law
Satisfied Customers: 3170
Experience:  Wills, Trusts, Probate & other Estate Matters
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Again Richard: This year I asked you a question about

Customer Question

Hello again Richard: This year I asked you a question about estate and inheritance tax. We sold the house and property this year (2015). The title company said we needed to go to an accountant so this sale could be reported to the IRS. Went to H & R Block,
an accounting firm-----they said they needed to know what the property was worth in the year 2000, that is when my mother in law died. No one has lived in the house since she died, but my wife and I have gone there every 3 weeks for the past 14 years to make
it look like someone lives there. Long story to this. My question -- Is the accounting firm right? If so, can you help me find out the value of the property was in the year 2000/ There are two lots to the same address, the address is 727 North 8th Street--Cottonwood,
Arizolna 86326
Submitted: 2 years ago.
Category: Estate Law
Expert:  Richard replied 2 years ago.
Although there would have been no estate and inheritance tax, when you sell the property, that is a potentially taxable transaction. The basis of the property would have been adjusted to its fair market value as of the date of death of the decedent. So, if she died in 2000, you do need the value at that time so you can determine the basis. Only appreciation on the house since that date would then gain and subject to tax. The best way to determine the value in 2000 would be to call a real estate brokerage firm in the area and ask that they provide you the general value of similar properties in the neighborhood at that time. Alternatively, you would need to get an assessment from a real estate appraiser. Given the lapse of time since 2000, you can make a guesstimate for the basis and it's not likely to be challenged by the IRS.