[WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

[Heather de Vrieze]

If Personal Representative is selling during estate administration, not long after death, the sale price will be the value for basis purposes. If on the other hand, it has been some time since death (a year or more is my recollection) then some evidence of value at death is needed. From my experience, the IRS will virtually always accept an appraisal, and while unlikely to challenge a BPO, in most cases, it may be questioned if there is an audit.

Heather

Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of msafren at jennylinglaw.com
Sent: Wednesday, September 14, 2022 9:13 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

Hello Fellow Listservs,

I wanted to ask your collective opinions and experiences on whether a Broker Price Opinion (BPO) was sufficient support to document the value of real estate (as of  the date of decedent's death) for the step up in basis for estate beneficiaries or if you think that a full on appraisal by a licensed appraiser was needed instead of the BPO.

The PR is selling real estate owned by the estate, but did not want to bear the expense and delay of the appraisal if it could be avoided and a BPO substituted to establish the value of real estate for purposes of obtaining the step up in basis valuation for the property for tax purposes.

Thank you all in advance!!

Warmest regards,

Michael S. Safren, Esq.
Attorney at Law

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005
P: (206) 859-5098 | E: msafren at jennylinglaw.com<mailto:msafren at jennylinglaw.com>
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