IRS Step-Up Appraisals in Buffalo, NY

Retrospective date-of-death valuations for IRS estate tax filings and stepped-up basis calculations. Protect your inheritance with proper documentation.

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Frequently Asked Questions

What is a step-up in basis and why does it matter?

When you inherit property, its tax basis "steps up" to fair market value at the date of death. This eliminates capital gains tax on all appreciation during the original owner's lifetime. Documenting this stepped-up basis with a professional appraisal protects you from overpaying taxes when you later sell the property.

How long after someone dies can I get a date-of-death appraisal?

You can obtain a retrospective date-of-death appraisal at any time, even years after the death. However, it's best to act promptly while market data is readily available and property condition can be more easily documented. We recommend getting the appraisal within the first year when possible.

What does a date-of-death appraisal cost in Buffalo?

IRS step-up appraisals in Buffalo typically range from $450 to $850, though retrospective valuations requiring extensive historical research may cost more. You'll receive a fixed quote based on your specific situation.

Does the IRS require a professional appraisal for stepped-up basis?

While the IRS doesn't always require an appraisal, having professional documentation is strongly recommended. Without an appraisal, you may struggle to prove the property's value if the IRS questions your basis—potentially resulting in additional taxes, penalties, and interest.

What qualifications must an appraiser have for IRS purposes?

The IRS requires a "qualified appraiser" with state certification, relevant experience, and USPAP compliance. Our appraisers meet or exceed all IRS requirements and provide the certifications and declarations needed for estate tax filings.

Understanding the Step-Up in Basis

The "step-up in basis" is one of the most significant tax benefits available to heirs of inherited property. When someone inherits real estate, the property's tax basis "steps up" to its fair market value as of the date of the decedent's death. This means that any appreciation that occurred during the original owner's lifetime is never taxed as capital gains. Documenting this stepped-up basis with a professional appraisal is crucial for Buffalo residents who inherit property.

Consider a home purchased decades ago for $50,000 that was worth $500,000 when the owner passed away. Without the step-up provision, selling the property would trigger capital gains tax on $450,000 of appreciation. With the step-up, the heir's basis becomes $500,000, and only gains above that amount are taxable. This can represent hundreds of thousands of dollars in tax savings.

Why You Need a Date-of-Death Appraisal

The IRS requires documentation of fair market value when claiming a stepped-up basis. While informal estimates might seem sufficient initially, problems arise when the property is sold— sometimes years or even decades later. Without a contemporaneous appraisal, heirs struggle to prove what the property was worth at the date of death.

Property values in Buffalo have changed significantly over time, making retrospective valuations increasingly difficult as years pass. Market data becomes harder to locate, comparable sales records may be incomplete, and memories of property condition fade. An appraisal performed near the date of death, or a properly researched retrospective appraisal, provides the documentation needed to support your stepped-up basis claim.

For estates that trigger federal estate tax filing requirements, an appraisal is mandatory. The IRS scrutinizes estate valuations carefully, particularly for high-value properties. An unsupported or inadequately documented valuation can result in adjustments, penalties, and interest charges. Eagle Home Appraisal Buffalo provides comprehensive appraisals designed to withstand IRS review.

Retrospective Valuation Methodology

Date-of-death appraisals are retrospective assignments—we determine what the property was worth on a specific historical date rather than today. This requires specialized research techniques and access to historical market data. Our appraisers maintain extensive databases of past sales in Buffalo and Erie County, enabling accurate retrospective analysis.

The retrospective approach involves researching comparable sales that occurred around the effective date, understanding market conditions at that time, and adjusting for any changes to the subject property. We document the property's condition as of the date of death through photographs, prior inspection records, estate inventories, and interviews with family members who knew the property.

Federal and New York rules behind a date-of-death value

How the IRS sets an heir's basis

The IRS treats an inherited property's basis as, in general, its fair market value on the day the owner died, whether or not anyone files an estate tax return. The main exception is the alternate valuation date, which applies only when the executor files Form 706 and elects it. Selling above that figure leaves a taxable gain. Because basis follows the value at death, it can end up higher or lower than the price the owner once paid. In some estates, a 2015 federal law also ties the heir's basis to the value the estate tax process finally settled on. An heir generally does not report the inheritance itself as income, but what the property earns afterward, such as rent, is taxable (IRS Publication 525).

Two estate tax thresholds for 2026 deaths

No inheritance tax exists at the federal level; the estate tax that does exist is owed by the estate, and the executor pays it. For a decedent who was a U.S. citizen or resident and died in 2026, the federal return is triggered once the gross estate passes $15,000,000 after adding adjusted taxable gifts and any specific gift tax exemption used. Executors also file one to elect portability.

New York's line is lower. A resident's estate files Form ET-706 when the federal gross estate plus includible gifts exceeds $7,350,000 for 2026 deaths, and it attaches a copy of the federal Form 706 even if no federal return is otherwise required (Department of Taxation and Finance). New York begins with the federal gross estate (Tax Law § 954), and the six-month alternate date can be used on that federal copy only if it reduces both the gross estate and the tax.

When a spouse shared title to the Buffalo home

IRS Publication 555 names the community property states, and New York is not on that list. If the decedent owned the home with a surviving spouse, ask your tax adviser how the basis rules apply to each share, and do not assume the whole house takes a new basis. The appraisal can value the full property as of the date of death; your adviser applies that value.

Our IRS Step-Up Appraisal Services

Retrospective date-of-death valuations

IRS Form 706 support

IRS Form 8283 compliance

Historical market analysis

Capital gains tax planning

Qualified appraiser certification

Comprehensive documentation

Estate tax filing support

Audit defense documentation

IRS Qualified Appraiser Requirements

The IRS has specific requirements for appraisers providing valuations for tax purposes. A "qualified appraiser" must have earned an appraisal designation from a recognized professional organization or meet minimum education and experience requirements. The appraiser must also demonstrate verifiable experience in valuing the type of property being appraised.

Eagle Home Appraisal Buffalo's appraisers hold state certification and maintain active credentials that meet or exceed IRS requirements. We provide the certifications and documentation needed for estate tax filings, including the required appraiser declaration. Our qualifications have been accepted in IRS examinations and audits throughout New York.

Timing Considerations

While date-of-death appraisals can be prepared at any time, there are advantages to acting promptly. Market data is most readily available for recent dates, property condition can be more easily documented while memories are fresh, and having documentation in place protects against future disputes or audits.

For estates requiring a federal estate tax return (Form 706), the filing deadline is generally nine months from the date of death. Appraisals should be completed well before this deadline to allow time for review and any necessary revisions. We recommend contacting us as soon as practical after a death to ensure timely completion.

Working with CPAs and Estate Attorneys

Step-up basis appraisals are typically requested by CPAs preparing estate tax returns or capital gains calculations, or by estate attorneys administering estates. Eagle Home Appraisal Buffalocoordinates directly with these professionals to ensure our reports meet their specific needs.

We understand that tax and legal professionals have specific requirements for documentation, formatting, and content. Our detailed reports provide the comprehensive information needed for tax compliance, including market analysis, comparable sales data, and certification statements required by the IRS. We are available for consultation to discuss valuation issues and methodology.

Three things to settle with your tax adviser before ordering

The date to appraise as of. For most estates it is the day the owner died. The alternate date, six months later, is available only through an election on Form 706, and for New York only when it lowers both the gross estate and the tax.
The filing, if any. The IRS instructions for Form 706 ask the estate to explain how real estate values were determined and to attach copies of any appraisals, and New York's Tax Department lists copies of appraisals among the documents an estate may need to provide. Basis rests on the date-of-death value whether or not a return is filed, so a report can also document basis for a later sale.
The property as it stood. The Erie County Clerk's deed records, indexed by party name, confirm what the decedent owned; the County's Real Property Parcel Search gives the deed book and page for an address. Dated photos, earlier listings and invoices show the condition on the date of death, before any cleanout or renovation.

The typical fee for this work is in the Frequently Asked Questions above, and a date far in the past can call for more research. Ask for a written quote that names the effective date and the delivery date.

Protect Your Inheritance Value

Document your stepped-up basis with a professional date-of-death appraisal. Contact us for a consultation about your IRS appraisal needs.

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The New York sections on this page were written with AI assistance for Eagle Home Appraisal Buffalo.