WHY IS AN APPRAISAL IMPORTANT FOR INHERITED PROPERTY?
A property appraisal is important for several reasons when property is inherited. There can be a division of ownership and the value must be ascertained to put a value on each owners portion. This will help if assets are traded or bought. You have just inherited property that has not been accessed a value in years, you are going to rent prior to selling. When you do decide to sell, your taxable capital gains will be based on the last value prior to transfer of ownership due to inheritance and the amount of the sale. For example: The inherited property was last accessed a value in 1945 at $25,000. You inherit the property in 2008 and there is no appraisal. You sell the property in 2012 for $160,000. The capital gains could be $135,000. If you would have had an appraisal done at the time of probate in 2008 the value would have been much closer to the sales price. For instance $145,000. Capital gains would only be $15,000 in this case and you would have documented proof. There are other r
