2026 IRS-Qualified Appraisals in Georgia: What Heirs & CPAs Need to Know About Step-Up Valuations
Inheriting a property in Georgia can be a blessing — or a tax trap — depending on how you handle the real estate’s valuation.
In 2026, the IRS is tightening review protocols for estate filings, especially when it comes to step-up in basis valuations. If you’re filing IRS Form 706 or 1041, or advising someone who is, you need an IRS-qualified real estate appraisal — and it needs to be done right the first time.
Recently, we helped a CPA and her client in Atlanta resolve a date of death valuation discrepancy that could’ve cost the estate over $15,000 in excess capital gains. The mistake? They used a sale price instead of the fair market value on the actual date of death. A licensed retrospective appraisal corrected the record — and avoided the audit.
Let’s walk through how to make sure you don’t make that mistake.
Step-by-Step: How to Ensure Your Appraisal Meets IRS Guidelines
Step 1: Understand What the IRS Actually Requires
According to the IRS’s estate and gift tax rules (IRS Pub. 559), a real estate appraisal must:
Be performed by a qualified appraiser
Follow USPAP standards
Reflect the property’s value on the date of death
Include comparable sales, adjustments, and defensible methodology
Be clearly documented and submitted with Form 706 or 1041 if applicable
CMAs, Zestimates, and agent estimates do not qualify.
You need a formal, signed, IRS-qualified appraisal report.
Step 2: Make Sure It’s a Retrospective Appraisal
The appraisal must be dated as of the day your loved one passed — not the date of the report, not the sales date, not “today.”
This is called a retrospective effective date, and it’s critical.
If your report doesn’t show that? The IRS could toss it out — or worse, flag the filing.
Step 3: Find a Local, IRS-Qualified Appraiser Near You
Searches like:
“IRS-qualified appraisal near me”
“Georgia estate tax appraisal”
“real estate appraisal IRS qualified Atlanta”
…are how most clients find us.
We serve the entire Atlanta metro and surrounding counties with licensed, retrospective appraisals for estate and probate purposes. Every report we deliver is built to hold up under IRS review and professional scrutiny.
Step 4: Document Everything for Your CPA or Attorney
We include:
A PDF copy of your report for legal/tax purposes
A simplified value summary
A signed certification from your appraiser
Support for any follow-up your CPA or attorney may need
No last-minute scrambling. No confusing paperwork. No mistakes.
Pro Tip for Heirs, Executors, and CPAs
If you’re filing Form 706 or handling asset distributions, don’t wait until tax season peaks.
We only take a limited number of estate appraisals each month to ensure turnaround time stays fast and accurate.
Here’s What’s Included When You Work With REI Valuations
✔ Licensed Georgia Appraiser (IRS-qualified)
✔ Retrospective date of death valuation
✔ USPAP-compliant methodology
✔ Court- and IRS-acceptable report format
✔ Clean documentation for tax filings
✔ Delivery within 5–7 business days
✔ Free upgrade to 3-day priority turnaround if you mention this blog ($75 value)
Filing Estate Taxes in Georgia? Don’t Risk the IRS Kicking Back Your Report.
We specialize in IRS-qualified estate and probate appraisals across Georgia.
Secure your licensed appraisal today — and file with confidence.
Only 3 estate appraisal slots left this week.
Request yours before calendars fill up.
Request Your Date of Death Appraisal Now
January 6th 2026 9:51am
5 IRS Mistakes That Can Blow Up a Step-Up in Basis Valuation (And How to Avoid Them)
This Isn’t Just About Getting the Value Right. It’s About Not Getting Audited.
Most heirs — and even some tax professionals — think a “date of death” appraisal is just a formality.
You slap a value on the inherited property, claim your step-up in basis, and move on.
But if that value triggers red flags at the IRS?
You're not just amending a return.
You're explaining the entire basis calculation under audit… with penalties on the table.
We’ve seen it happen. And we know exactly where things go wrong — and how to stop it before it does.
Here Are the 5 Mistakes That Trip Up Most Step-Up Appraisals
1. Using a Real Estate Agent’s CMA Instead of a Licensed Appraisal
The IRS doesn’t accept guesswork.
CMA = Comparative Market Analysis. Not compliant. Not USPAP-standard. Not defensible.
One estate we worked on had an agent estimate of $385,000.
Our licensed appraisal? $451,000 — based on proper comps, adjustments, and market timing.
That $66,000 difference meant a much bigger step-up (and massive long-term tax savings).
2. Choosing the Wrong “Effective Date” of Value
The IRS wants the FMV on the actual date of death — not the filing date, not the estate sale closing date.
We see heirs accidentally use:
The date the will was probated
The day the house was listed
Or worse — a random estimate months later
Solution: Get a retrospective appraisal with the effective date locked in to the decedent’s death.
3. Using the Sales Price as the Step-Up Basis
Just because the home sold for $500,000 doesn’t mean that was its FMV at the time of death.
Markets shift. Interest rates move. Supply and demand change.
In one case, a property sold for $500K… but had a date-of-death FMV of $535K.
Reporting $500K left $35,000 on the table in future capital gains.
4. Failing to Document Property Condition
The IRS doesn’t just want value — it wants supporting evidence.
That means:
Interior photos (not just exterior)
Descriptions of repairs/upgrades
Commentary on deferred maintenance
Why it matters:
If the property had issues, your appraiser needs to reflect those in value — or the IRS will assume otherwise.
We've had cases where the appraised value came in lower than expected — saving the estate on taxes because the home had structural issues.
5. Waiting Too Long and Losing Records
We’ve had heirs come to us 18 months after death, asking for a valuation — with no photos, no walkthrough access, and no context.
Reconstructing FMV becomes much harder — and far riskier — when:
The property has been renovated
It’s been rented or sold
There’s no documentation from the time of death
Best practice: Order the appraisal within 30–90 days of death, even if the estate won’t file for months.
What a Proper Step-Up Appraisal Should Include
A real IRS-ready Date of Death Appraisal from REI Valuations includes:
Retrospective value as of the exact date of death
USPAP-compliant, defensible methodology
Photographic and market evidence
PDF + electronic delivery for CPA/attorney use
Optional affidavit/certification language if needed
For CPAs, Attorneys, and Heirs Who Can’t Afford a Mistake
We specialize in court-accepted, IRS-compliant, and timely date of death appraisals across Georgia.
Includes full licensed appraisal report
Bonus: Property profile PDF to share with your tax preparer
Priority 72-hour delivery available
Only 3 open appraisal slots left this week
January 4 2026