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

Thu Sep 15 09:09:13 PDT 2022

I have always used an appraisal and over 48 years never had a problem. But
the test as I understand the law is to properly reflect the fair market
value. If a BPO does that, then should be good to go. It just has not been
my practice.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

324 West Bay Drive NW, Suite 201

Olympia, WA 98502

(360) 866-4000 phone

(360) 866--3832 fax

www.buddbaylaw.com

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*From:* wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
*On Behalf Of *Heather de Vrieze
*Sent:* Thursday, September 15, 2022 8:46 AM
*To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
*Subject:* Re: [WSBAPT] BPO vs Appraisal for property valuation to obtain
step up in basis for estate beneficiaries

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*

3909 California Avenue SW

Seattle, WA 98116-3705

(206)938-5500

heatherd at westseattlelaw.com

www.westseattlelaw.com

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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
*www.jennylinglaw.com <http://www.jennylinglaw.com/>* |
*facebook.com/jennylinglaw/
<http://www.facebook.com/jennylinglaw/>*

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