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Decedent died September 5, 2006. In November 2006 his residence was appraised as of the date of death at $1,325,000. In January 2007 the estate listed the property for sale for $1,395,000. An offer of $1,400,000 was accepted in February 2007 and the escrow closed March 22, 2007, six months and two weeks after death.
For the 706, we would, obviously, rather use the appraised value rather than the sales price. Would the IRS just dismiss that out of hand due to the proximity of the sale to the date of death or does anyone think we have a reasonable chance of persuading them that the property could have appreciated that much between the date of death and the selling date.
Its a 5.7% increase. Even given all of the talk of the downturn, median prices for homes in the decedent's area of Los Angeles county were increasing during the period. In fact, the LA Times showed the median price of homes in the particular area were up 17% for the 12 months ending September 2007.
I know no one can give a definitive answer to this question but I would welcome any body's thoughts or experiences.
Thank you.
Richard Cassidy
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Ask the appraiser whether he or she would be willing to testify, if necessary, in court.
John Jacobson
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what was the trend of prices in the area over that period of time?
does this house have something that would make the trend not relevant to this house?
i.r.s. generally looks at sales prices near d.o.d. as being very strong indications of the value at d.o.d.
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| Thanks for the replies gentlemen, There were some other issues with the estate so I decided not to push it here and went with the selling price.
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