Do I need a Date of Death appraisal in Atlanta for inherited property?

If you inherited real estate in Atlanta, a Date of Death appraisal is often required for probate, IRS Form 706 reporting, and establishing cost basis. Without it, you may face tax exposure, filing delays, or challenges supporting the property’s value.

Can I get a Date of Death appraisal years after someone passed away?

Yes. Date of Death appraisals are retrospective, meaning the value is developed based on market conditions at the time of death, even if that date was months or years ago. However, delays can make supporting data harder to verify.

What happens if my estate valuation is challenged by the IRS?

If challenged, the appraisal must be defensible. A well-supported report with historical data and proper methodology can withstand scrutiny. Weak or unsupported valuations often lead to revisions, disputes, or increased tax liability.

Can I use a real estate agent’s CMA instead of an appraisal?

No. A CMA or agent opinion is not considered a qualified appraisal and typically does not meet IRS or probate requirements. These informal estimates are not designed to support legal or tax-related valuation needs.

How does a Date of Death appraisal affect cost basis?

The Date of Death appraisal establishes the stepped-up cost basis for inherited property. This directly impacts future capital gains taxes. An inaccurate valuation can result in overpaying taxes or difficulty defending your basis later.

What qualifies an appraiser for IRS-related estate valuations?

An IRS-qualified appraiser must meet specific education, experience, and competency requirements for the property type being valued and must be capable of producing a credible, well-supported report for tax purposes.

Inherited Property in Atlanta? The Atlanta Estate Valuation Mistake That Can Cost Heirs Thousands in Taxes (And Why It’s Missed)

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Mar 28

Written By R.E.I Valuations .

Most heirs in Atlanta don’t realize their Date of Death appraisal determines future tax liability. A weak or incorrect valuation can inflate capital gains, trigger IRS questions, or fail under audit. Here’s how to secure defensible cost basis—and avoid paying more than legally required.

Step-by-Step (Built for Probate Heirs & Executors in Atlanta)

Step 1: Confirm If You Legally Need a Date of Death Appraisal

Most heirs don’t realize this until it’s too late.

If you’re dealing with:

IRS Form 706 (estate tax)
IRS Form 709 (gift tax carryover)
Probate court filings in Atlanta
Cost basis reporting for a future sale

…you are already in a position where valuation is not optional—it’s defensible documentation.

Risk if ignored:
You file with estimates → IRS questions valuation → audit exposure increases.

Step 2: Understand What the IRS Actually Requires (Not What Agents “Say”)

There’s a difference between:

A casual market estimate
A real estate appraisal
A qualified IRS appraisal

The IRS expects:

A qualified appraiser
A retrospective valuation (as of date of death)
Documentation that can withstand scrutiny under Form 706 standards

Key tension:
A standard appraisal ≠ an IRS-qualified appraisal.

Risk if wrong:
Your report gets rejected → refile → penalties or delays.

Step 3: Lock the Correct Date of Value (This Is Where Most Errors Happen)

Date of death ≠ current value.

Your valuation must reflect:

Market conditionson the exact date of death
Comparable sales from that time period
Adjustments based on historical data

What most people do:
Use today’s value → assume it’s “close enough”

Reality:
Markets in Atlanta have shifted significantly year-to-year.

Risk:
Overvaluation → higher tax liability
Undervaluation → IRS audit trigger

Step 4: Identify the Property Complexity (Not All Homes Are Equal)

Not all properties can be handled with basic comps.

High-risk property types include:

Luxury homes in Buckhead / North Atlanta
Unique or custom-built homes
Rental or income-producing properties
Properties with deferred maintenance

Why it matters:
The more complex the asset → the higher the scrutiny.

Risk:
Generic valuation → collapses under CPA or IRS review

Step 5: Separate “Opinion” From “Defensible Documentation”

Most heirs receive:

Realtor opinions
Online estimates
Informal valuations

These are not defensible.

A proper appraisal must:

Follow USPAP standards
Include methodology, adjustments, and support
Be signed by a qualified appraiser for tax purposes

As emphasized in , advertising—and by extension valuation—must be based on proven principles, not guesswork. The same applies here:
If it can’t be defended, it doesn’t count.