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I need an Appraisel for Inheiritance Tax purpose on a house.?

House is vacant. We are settling an estate.

Asked by Anonymous | Uniontown, PA| 03-09-2022| 853 views|Tips & Advice|Updated 3 years ago

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Zoltan PeresztegiReal Estate Agent2 months ago

You are asking the right question, and the reason it matters more than people realize is that this one number does two separate jobs. Get it right and it does both. Get it wrong and it costs money on one end or the other. Job one is the Pennsylvania inheritance tax. Pennsylvania is one of the few states that still has one, and it applies from the first dollar with no exemption threshold. The rate depends entirely on who inherits: 0 percent to a surviving spouse, 4.5 percent to lineal descendants and ancestors, meaning children, grandchildren and parents, 12 percent to siblings, and 15 percent to everyone else. So if the heirs here are the decedent's children, a $200,000 valuation produces roughly $9,000 of Pennsylvania inheritance tax on the house. If the heir is a sibling, the same house produces about $24,000. Knowing which bracket applies changes how carefully you want that valuation supported. Two deadlines you need on the calendar right now. The Pennsylvania inheritance tax return is due nine months from the date of death. And there is a 5 percent discount on tax paid within three months of death. That discount is real money and most families miss it because they are still gathering documents. If you are inside that window, talk to the estate's attorney about making an estimated prepayment. Job two is the step-up in basis, and this is where the interests pull in opposite directions. Under federal law the heirs' cost basis in the property resets to fair market value as of the date of death. If the house appraises at $200,000 and the heirs sell it two years later for $210,000, the taxable gain is roughly $10,000, not the decades of appreciation the decedent accumulated. A low valuation saves Pennsylvania inheritance tax today and creates federal capital gains exposure later. A high valuation does the reverse. That trade-off is exactly why you want a defensible independent number rather than a number someone picked. What to order, specifically. A date of death appraisal, sometimes called a retrospective appraisal, from a Pennsylvania state certified appraiser working to USPAP standards. Two details matter. The effective date of value must be the date of death, not the date the appraiser walks the property. And the appraiser needs experience with estate and retrospective work, because valuing a property as of a past date using only sales that closed before that date is a different skill from a purchase appraisal. Pennsylvania does not strictly require a formal appraisal, and a broker's opinion or a comparative market analysis is sometimes accepted. I would not rely on that if the estate is meaningful or if any heir might later disagree with anyone. A certified appraisal is the document that survives scrutiny from the Department of Revenue, from the IRS, and from a family member with a lawyer. Three practical notes for a vacant house. Insurance. Standard homeowners policies often exclude or limit coverage on a vacant dwelling, and many lapse or restrict coverage after thirty or sixty days of vacancy. Call the carrier and get a vacant dwelling policy in place. An uninsured loss during estate administration is a genuine disaster. Winterize and secure it. Uniontown gets hard freezes. A burst pipe in a vacant house in February can cost more than the inheritance tax. Document the condition on the date of the appraisal with photographs. If deferred maintenance is what supports a lower value, you want that on the record, dated. I am a real estate professional, not an appraiser, an attorney or a CPA, and this is a case where the estate's attorney and accountant should be coordinating with the appraiser before anything is ordered. The effective date and the intended use both get written into the appraisal report, and they need to match what the return requires. I am Zoltan Peresztegi and I work Palos Verdes and the South Bay in Los Angeles, so I am not your Fayette County agent. If you also plan to sell the house after the estate settles, keep the appraisal and the sale separate: order the retrospective appraisal for the return, and get a current market analysis separately for pricing, because those are two different numbers doing two different jobs. Zoltan

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Keith Jean PierreReal Estate Agent5 months ago

Google "real estate appraiser," followed by your city and state and results will populate. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Amanda CourtneyReal Estate Agent10 months ago

You need a Retrospective Appraisal, which determines the value of the property as of the date of death. Hire a licensed appraiser and give them the exact date needed for tax reporting. This is often required for probate or IRS filings.

Amanda CourtneyReal Estate Agent11 months ago

For inheritance or estate tax, you’ll need what’s called a “date of death appraisal.” This provides the fair market value of the home at the time of the owner’s passing. A licensed real estate appraiser or agent can prepare this for your accountant or attorney.

Jerry A Lesak CSDReal Estate Agent4 years ago
Novice2 Answers

Google appraiser in your city. Have them do a appraisal but tell them the reason for it. Not appraisals are the same. There are different kinds

Marty & Abby ChampagneReal Estate Agent4 years ago
Semi-Pro83 Answers

I would call your bank or an appraiser in your area to help you.

Betty RenfroReal Estate Agent4 years ago
Novice1 Answer

You would need to hire an appraiser in your area. Thank you!

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