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Old 03-12-2018, 09:36 PM   #21
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Originally Posted by CaliKid View Post
Get a new tax person.

The alternate valuation date applies only to 706 (estate tax return) so ignore that advice above.

I would just go with the sale price and assume no gain. That's very reasonable any place but especially in slow growth areas.

I would not bother getting an appraisal unless you get audited which you won't.

Good luck.
Thanks CaliKid. Actually, we've pretty much decided to stay with our tax man. We are/were in the process of looking for a new tax person and selected a larger company who apparently farmed out our return to one of their inexperienced CPAs. We are having our taxes done by both for various reasons. When I spoke to our 'old' tax man about the inheritance and provided the same information, his response was 'no problem, we're good to go and if they come back for anything we'll deal with it then.' That's why I was so surprised to get the e-mail from our 'new' person requesting a date of death valuation.

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Old 03-13-2018, 05:39 PM   #22
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Originally Posted by Jimbo125 View Post
I think you need a new tax lady.

Inherited property gets a step up in basis to the value at date of death. You can also elect to have an alternate valuation date of six months after death.
The only gain you should have is between the date of death and the date of sale. If you elected the alternate valuation date, then both homes were sold prior to that date, so you have no gain.

This assumes that the your DH wasn't a co-owner of the house at date of death.
+1. Agree

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