IRS Fair Market Value Appraisals
A real estate value used for a tax matter needs a clear definition, an appropriate effective date, and evidence supporting the conclusion. We develop independent fair market value appraisals for estate, gift, and related assignments in Northern California.
Define the assignment before the analysis
Federal tax matters can involve different filing requirements and different property interests. Before beginning, we identify the intended use, intended users, required date, rights being valued, and reporting needs with the client and their tax or legal adviser. This helps ensure the requested appraisal addresses the actual question.
What fair market value considers
Fair market value generally considers the price informed, willing parties would agree upon without either being compelled to act. The analysis examines the relevant property and market on the specified date. It does not simply adopt an assessed value, an insurance amount, or an owner’s preferred figure.
Support for the conclusion
Depending on the property and assignment, the report discusses relevant sales, income information, other applicable approaches, and the reasoning behind the final value opinion. Historical research, assumptions, and information limitations are explained. The conclusion is developed independently of any desired tax result.
Coordinating with your adviser
Please provide the intended tax use, the property address or parcel list, relevant ownership documents, the required valuation date, and filing deadlines. If particular forms, disclosures, or follow-up responses are needed, identify them when requesting the assignment. Your tax professional determines the applicable filing treatment and any additional requirements.
Let’s define the assignment.
Tell us about the property, the decision you need to make, and any deadline. We will discuss the scope, fee, and next steps.
Discuss a Tax Valuation