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
Why You Need a Divorce Appraisal to Protect Your Equity During a Property Division.
Divorce is never easy—but ensuring you receive your fair share of the home’s equity shouldn’t be another battle. Whether you’re working through an amicable separation or preparing for court proceedings, having an accurate, impartial home appraisal is one of the most important steps you can take during your divorce.
At REI Valuations & Advisory, we specialize in divorce appraisal services across the Atlanta metropolitan area. We provide detailed, defensible valuations that can help settle disputes, support negotiations, and guide attorneys, mediators, and judges toward equitable property division.
Because in Georgia, real estate is often one of the largest marital assets—and if the value is off by even 5–10%, you could be walking away from thousands in equity. Zillow estimates, online guesses, and agent CMA reports simply don’t hold up when hard numbers are required in court or mediation. A certified appraiser offers a legally recognized opinion of value that can stand up to scrutiny.
We understand the emotional and financial stress that comes with divorce. That’s why we operate with professionalism, speed, and confidentiality—often delivering appraisals within days, not weeks.
Our divorce appraisal services help ensure that you receive what you’re entitled to—nothing more, nothing less.
Don’t rely on assumptions. Rely on actual value.
Request yours before our calendar fills up: Schedule Your Divorce Appraisal Now
December 5 2025
How to Find the Right Real Estate Appraiser in Atlanta — And Why Our Licensed Firm Is Built for It.
When you’re dealing with a complex real estate situation, the last thing you want is confusion about value. Whether you’re navigating probate, settling a divorce, preparing for bankruptcy, or supporting an immigration application, a reliable real estate appraiser can make or break the process.
But how do you find the right appraiser in a city as sprawling as Atlanta?
Let’s break it down.
What to Look for in a Real Estate Appraiser (Especially in Metro Atlanta)
Finding the right appraiser isn’t just about checking for a license (though that’s a must). It’s about choosing someone who:
Specializes in your unique situation (not just cookie-cutter lender appraisals)
Understands the local market — not just the city, but the nuances across Cobb, Fulton, DeKalb, Gwinnett, Clayton, Henry, and surrounding counties
Can explain value in plain English to attorneys, judges, CPAs, or government agencies when needed
Delivers fast, credible results backed by data and certification
Who We Are: Your Atlanta-Based Real Estate Valuation Partner
We’re a licensed real estate valuation company based in the Atlanta metropolitan area, and we specialize in helping homeowners, families, attorneys, and professionals navigate life’s most important (and often most stressful) property moments.
We provide certified real estate appraisals for:
These aren’t just one-size-fits-all appraisals — they are specialized valuation services tailored to the legal and financial realities of your situation. And we do them every week throughout the Atlanta metro.
Serving the Entire Atlanta Metro Area
We proudly serve all of Metro Atlanta, including:
Fulton
Cobb
DeKalb
Gwinnett
Clayton
Henry
Fayette
Rockdale
And surrounding counties
If it’s in the Atlanta metro, we’re likely already appraising there this week.
Free Situation Guides — Because Real Estate Isn’t Always Simple
Not sure what kind of appraisal you need? Wondering what documents are required? Need to explain the process to your attorney or loved ones?
We’ve created free, downloadable situation guides that walk you through:
Real estate problems don’t solve themselves — and vague, outdated, or biased valuations only make things worse.
If you’re dealing with any real estate matter where value plays a central role, let’s talk.
We’re licensed
We’re local
We specialize in life’s most complex valuation needs
And we’re here to help
Call us or request a quote now
Backed by experience, data, and integrity
November 23 2025
How to Find the Right Real Estate Appraiser in Atlanta — And Why Local Experience Matters.
Searching online for a trusted appraiser? Here’s how to spot the right one — and how REI Valuations helps you avoid costly mistakes.
If you’ve been searching Google for “certified appraiser near me” or scrolling Yelp trying to find the right person to value your home, land, or estate — you’re not alone.
Every day, homeowners, families, and professionals across metro Atlanta go online looking for trusted help in situations like:
And while you’ll see dozens of results on Google, directories, or review sites — not every appraiser is built the same, and not every one is qualified for your situation.
Why Local, Specialized Experience Matters
At REI Valuations, we’re not a generic, one-size-fits-all firm. We specialize in non-lender, often time-sensitive and high-stakes situations where the appraisal isn’t just a formality — it’s a key part of your legal, financial, or personal decision-making.
Here’s what sets us apart:
Trusted by Atlanta-area homeowners, attorneys, and families for high-stakes appraisals
Hyper-local expertise — we don’t just know Atlanta; we work in its neighborhoods, ZIPs, and court systems every week
We handle the tricky stuff: divorce, probate, tax appeals, bankruptcy, relocation, sponsorship — not just basic home value reports
Clear communication & guidance — you won’t be left guessing what’s happening or what you’re getting
Found on platforms you already trust: Google, Thumbtack, Better Business Bureau, and more
️ Proven reviews — our clients consistently praise our speed, clarity, and how easy we make the process
Questions You Might Be Asking:
The truth is: you may not even need an appraisal yet. But before you talk to a lawyer, agent, CPA, or sign anything official — talk to us first.
We offer free situation guides to help you figure out:
When an appraisal is helpful — and when it’s not
What to ask before you commit to any provider
The top 5 mistakes people make when starting the process
And how to protect yourself from getting steered in the wrong direction
Why People Trust REI Valuations
We’ve been trusted by Atlanta homeowners, real estate professionals, and legal advisors because we:
Show up on time
Deliver on deadlines
Break things down in plain English
Know how to work with attorneys, courts, and tax assessors
And treat every appraisal like it matters — because to you, it does.
Whether you found us on Google, Yelp, Thumbtack, or heard about us from a professional — you’re in the right place.
Don’t Wait — Our Schedule Books Up Fast
If you’re facing a deadline (for court, closing, IRS, employer, or assessor), we recommend securing your appraisal slot now.
We limit how many clients we take per week to ensure quality and turnaround time.
Download your Free Situation Guide here
Learn exactly what you need to know before you spend a dollar
Visit: www.rei-valuations.com/home-appraisal-request
Or call us directly to discuss your situation.
Whether you’re selling, splitting, relocating, or filing — you deserve clarity and confidence in your next step.
REI Valuations is proud to serve the Atlanta community with local insight, professional integrity, and personalized guidance you won’t get from a national chain or click-to-hire app.
November 16 2025