Preparing for a Tax-Related Property Appraisal in Riverside
The main way an appraisal helps a Riverside taxpayer with the IRS is on an inherited house. An appraisal of its value on the date of death gives the heirs a documented figure for their tax basis, which is what any gain is measured against when they sell. Your tax adviser decides which date and which use apply; the appraisal supplies the value.
Written scope and fee before any work begins.
Why an inherited home needs a past-date value
Under 26 U.S.C. section 1014, an heir's basis in inherited property generally equals what it was worth on the day the owner died. IRS Publication 551 explains that basis is used to figure gain or loss when the property is sold. So when heirs sell the house, only the profit beyond that basis is generally taxed, and the appraisal is the record that supports the number.
The adjustment can go either way. If the home lost value before the death, the new basis is lower than the old one. "Step-up" is a label, not a promised tax result.
If the owner was married and the home was community property, the survivor's half may also take a new basis. That turns on how the couple held and paid for the home, so your tax adviser should confirm it. The full rules are on our IRS step-up appraisals page.
Other tax uses of an appraisal
Our IRS step-up page also names estate planning, charitable donations and capital gains calculations as purposes a tax-related appraisal can document. Each has its own requirements, and one appraisal can serve more than one purpose only if the report includes what each needs. Tell us every purpose up front so the report is written for it.
Whether any of these applies to you is a tax question, not an appraisal question. Ask your adviser first.
What the appraisal documents, and what it doesn't
A retrospective appraisal develops a value for a past effective date. The report states that date, the intended use, who may rely on it and any assumptions about the home's condition then. Your adviser, not the appraiser, identifies the applicable date and use. We agree the reporting scope with you and the intended users before work begins.
The appraisal does not decide your tax. It does not choose between the date of death and an alternate date, and it does not decide whether a federal estate tax return is required. Those calls belong to your adviser or the estate's attorney.
The appraiser describes the home as it was on the date being valued, not as it is today. If you have since replaced a roof, remodelled a kitchen or cleared the yard, the report still reflects the earlier condition, and your photos, old listings and invoices help show what changed and when. It also relies on sales and market conditions from around that date, not the current market.
What to gather
- The property address, the date of death and the date your adviser wants valued
- Whether an estate tax return will be filed
- The deed or trust documents
- Photos, listings, inspection reports or earlier appraisals from around that date
- A dated list of repairs and improvements since
- Your adviser's instructions and your deadline
- How to arrange entry to the home
What it costs
As a price guide, the VA's published fee for a single-family home in Riverside County is $750 (effective May 1, 2026, VA fee table). A private tax-related appraisal can cost more or less depending on the property and the assignment, and research into an earlier market can affect both the fee and the schedule. We give a written scope, fee and delivery estimate before work begins. More in our cost guide.
Next step
Call us, or send the address, the date your adviser wants valued, the intended use and your deadline. Confirm a delivery estimate before a filing or sale date depends on it.
The law, the alternate date and the records that help date the facts: IRS step-up appraisals. If the estate is in probate, start with probate appraisals.