09/01/2026
đź“‹ Inherited property generally gets a new tax basis equal to its fair market value when the owner dies, but you still need records supporting that value.
Say Dad paid $80,000 for a house, it was worth $400,000 when he died, and you sell it two years later for $430,000.
Ignoring selling costs and other adjustments, that is a $30,000 capital gain, not a $350,000 gain, and inherited capital assets are generally treated as long-term regardless of how quickly you sell.
You do not have to order the appraisal the day someone dies, but getting a valuation soon afterward makes the date-of-death value much easier to document while comparable sales, photos and details about the home's condition are fresh.
A retrospective appraisal can still be prepared years later, and the problem is that you are asking an appraiser to reconstruct an older market with older evidence.
Publicly traded stocks are easier to value, because under the estate-tax valuation rules they generally use the average of the high and low selling prices on the valuation date, with special rules when there was no trade that day.
Most estates are not required to file Form 706 because the federal filing threshold is $15 million for deaths in 2026, though some smaller estates still file, including to preserve a deceased spouse's unused exclusion through portability.
The important distinction is that an appraisal is not what creates the new basis, the law does that, and the appraisal helps you substantiate what the property was worth.
Have you ever had to reconstruct a value years after the fact? What did it take?
P.S. Once a week, I email the best money article I read, with my take on this week's top Facebook posts and what's new on the Ways to Wealth blog. It's free, and you can sign up on the Ways to Wealth home page.
R.J. Weiss, CFP®
*The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.*