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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7197
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I hope so. My brother and I just sold the family home. Our

Customer Question

I hope so. My brother and I just sold the family home. Our parents purchased it in 1965. Our dad died in 1993 and our mother just passed in Dec. 2014. We were told we need the value of the house in 1993 when our dad died. Then that value is used to help determine our capital gains. How do we get that value?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q: How do we get that value?

A: You can go to the county assessor's office to find out what the value of the property was in 1993. The county assessor should have property tax/value rolls archived, and should be able to tell you what the value of the property was in 1993.

Let me know if you require further assistance with this matter.

Customer: replied 1 year ago.
The house was under Proposition 13 values on property taxes. Will that impact recorded value? Or does that have nothing to do with it?
Expert:  Tax.appeal.168 replied 1 year ago.

Hello again,

Q: The house was under Proposition 13 values on property taxes. Will that impact recorded value?

A: Based on the following information, yes. SEE BELOW:

Assessment Rollback.

Proposition 13 rolled back property values for tax purposes to their 1976 level.

REFERENCE SOURCE:

http://www.californiataxdata.com/pdf/Prop13.pdf

Customer: replied 1 year ago.
if prop 13 doesn't allow for accurate value in 1993, how do we get it?
Expert:  Tax.appeal.168 replied 1 year ago.

You can ask the assessor's office for the value of similar properties in 1993 that were not under Prop. 13. Example, if the property is 3 bedroom, 2 bath, 1,400 square feet, ask the Assessor's office what the property value was of other similar properties that were not under Prop 13. I am on my way out the door right now. If you need additional information, I can respond when I return to the computer in a few hours.

Expert:  Stephen G. replied 1 year ago.

Another expert here. Why are you concerned about the historical value of the property? When your mother died in 12/2014, you would inherit the property at the Fair Market Value at her date of death. If the property is sold within a 6 month to 1 year of the date of death, the IRS will normally accept the selling price as also equal to the fair market value at the date of death, ie. in your case 12/2014. This would result in no gain on the sale and you may in fact actually have a loss due to any sales commission or closing expenses. Please let us know why you are concerned about the value of the property when your father died in 1993? This should be a non-issue