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In first to die estates I've often used a local realtor as a source for the value of the family home as long as they are familiar with the area and cite comparable sales. My colleague went to a CPE event where the speaker (perhaps Dave Gaw) said that a realtor could no longer be used for valuation as of 1/1/07.
Is this related to the appraiser provisions of the Pension Protection Act? Has anyone else heard this?
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Member
 
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probably is from the ppa...
and the related penalty provisions- very nasty penalties now. for those who are doing valuations, i would expect to see fees increasing.
i imagine that a penalty could apply in the first to die estate due to trust funding issues, and related valuation issues.
not intended to be a replacement for your research, but i did a quick search and found this info:
http://www.abanet.org/rppt/publications/ereport/2006/1/heller_pension.shtml
Anonymous (6/27/2007)
In first to die estates I've often used a local realtor as a source for the value of the family home as long as they are familiar with the area and cite comparable sales. My colleague went to a CPE event where the speaker (perhaps Dave Gaw) said that a realtor could no longer be used for valuation as of 1/1/07.
Is this related to the appraiser provisions of the Pension Protection Act? Has anyone else heard this?
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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| Hello Mike: I followed the link and I don't see that it answers the question posed by *Anonymous.* If someone asks a local realtor to give a value to be used for 706 purposes and they know that it will be used for that purpose and they don't receive a fee, there doesn't seem to be a penalty under PPA. If the IRS says that the appraisal doesn't meet the standard, the penalty is capped based on the fee received by the appraiser. I think the original question was if the CPA/706 preparer could be penalized by relying on such an appraisal.
Mary Kay Foss
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