Step-Up in Basis Appraisal in Atlanta, GA (Avoid IRS Mistakes That Can Cost You Thousands)

One Mistake in Your Valuation Can Cost You More Than the Appraisal Ever Will

The IRS allows inherited property to receive a step-up in basis, meaning the value is reset to fair market value at the date of death.

That single number determines:

  • How much tax you owe

  • Whether you overpay

  • Whether your CPA can defend the filing

But here’s the problem:

Most people unknowingly make mistakes that:

  • Inflate their tax burden

  • Create reporting issues

  • Trigger unnecessary scrutiny

And once it’s filed:

Fixing it is difficult, expensive, and sometimes impossible.

The 5 Most Common Step-Up in Basis Mistakes (That Cost Real Money)

1. Using the Wrong Value (Current Market Instead of Date of Death)

The IRS requires value as of the date of death—not today.

Using current listings or recent opinions:
→ distorts your basis
→ leads to incorrect tax calculations

2. Relying on a CMA, Zestimate, or Unsupported Opinion

These are not defensible.

They:

  • lack historical analysis

  • lack proper methodology

  • are not accepted for tax reporting

Result:
→ weak foundation for your tax position

3. Using an Appraiser Without IRS Experience

Not all appraisals are built for:

  • IRS review

  • CPA reliance

  • legal scrutiny

If the report isn’t structured properly:
→ it may not hold up when it matters

4. Missing or Weak Comparable Data

A proper step-up in basis requires:

  • historical comps near the effective date

  • supportable adjustments

  • market condition analysis

Without this:
→ the valuation becomes questionable

5. Waiting Too Long to Get the Appraisal

Delays create problems:

  • historical data becomes harder to support

  • deadlines approach

  • decisions get rushed

And rushed valuations:
→ lead to mistakes

Why These Mistakes Matter More Than You Think

The step-up in basis directly determines your taxable gain when you sell inherited property.

If the value is too low:
→ you pay more in taxes

If the value is unsupported:
→ it may not hold up under review

If the value is wrong:
→ your financial outcome is wrong

This is not just a report:

It is a financial decision that affects real dollars.

How to Avoid These Mistakes (What You Actually Need)

To protect your position, the appraisal must:

  • Reflect fair market value at the date of death

  • Use historical comparable sales

  • Be completed by a qualified appraiser

  • Be fully supported and documented

  • Be suitable for IRS and CPA use

Anything less:
→ increases risk

How Our Appraisals Prevent Costly Errors

At REI Valuations & Advisory, we structure assignments specifically for tax-sensitive situations:

  1. Confirm intended use (sale, IRS, CPA coordination)

  2. Establish correct retrospective effective date

  3. Analyze historical market conditions

  4. Develop a fully supported valuation

  5. Deliver a USPAP-compliant report for real-world use

We focus on:

  • accuracy

  • defensibility

  • financial outcomes

Why Clients Come to Us After a Mistake

Many clients reach out after:

  • receiving conflicting values

  • being unsure what number to use

  • realizing their valuation may not hold up

At that point:

  • time is limited

  • stakes are higher

The goal is to get it right the first time.

Why REI Valuations & Advisory

  • Focused on non-lending, tax-related appraisal work

  • Experience with step-up in basis and date of death valuations

  • Reports built for defensibility—not shortcuts

  • Local expertise in the Atlanta market

Frequently Asked Questions

What is the biggest mistake people make with step-up in basis?

Using the wrong value (current instead of date of death).

Can I fix a bad valuation later?

In some cases—but it can be difficult, costly, and may require rework.

Do I need an appraisal before selling inherited property?

Yes—this establishes your tax basis before the sale.

Is this the same as a date of death appraisal?

Yes—the step-up in basis is based on the date of death value.

Schedule Your Step-Up in Basis Appraisal (Atlanta, GA)

If you:

  • Inherited property

  • Plan to sell

  • Want to avoid unnecessary taxes

You need a valuation that is:

  • accurate

  • defensible

  • built for tax reporting

We offer a complimentary 30-minute Appraisal Fit Call to determine:

  • if an appraisal is needed

  • the correct effective date

  • scope and timing

Availability is limited.

Schedule your call today before mistakes turn into permanent costs.