Why a Date-of-Death Appraisal Matters When You Inherit a Texas Home

When you inherit a house, the value on the date your loved one died can matter a lot later, especially when you sell. A date-of-death appraisal documents that value.

Why the date-of-death value matters

Inherited property often receives what's called a "stepped-up basis," which generally means its tax basis is reset to its value at the date of death. When you sell, any taxable gain is usually measured from that value, not from what your loved one originally paid. Your CPA can explain exactly how this applies to your situation.

Why documentation helps

If questions come up later, a professional appraisal tied to the date of death is much stronger support than an online estimate or a guess. It can also help the executor with estate accounting and help heirs agree on fair values when dividing property.

Retrospective appraisals

If time has passed, a licensed appraiser can usually still do a retrospective appraisal, looking back at sales and market conditions around the date of death.

Appraisal vs. market analysis

A Realtor's market analysis is a great tool for setting a list price, and many families get both. For tax purposes, your CPA may prefer a formal appraisal from a licensed appraiser.

Tips

• Keep the appraisal with the estate records
• Note the condition of the home at the time
• Save receipts for any improvements made after the death

Help documenting value

Southern Luxe Group can share market data and connect you with local appraisers in Austin, Round Rock, Georgetown, Cedar Park and Bryan–College Station. Get a no-pressure plan for the property or call Trina at (512) 629-9050.

This article is general information, not legal advice. Please consult a Texas probate attorney about your situation.

Please consult a CPA or tax professional about the tax treatment of an inherited home.