Step-Up Basis
Appraisals

The assignment is an appraisal concluded as of a defined effective date (often the date of death or an alternate date) to document a value relevant to basis. It does not determine the actual tax basis or guarantee any adjustment — basis and any step-up are tax matters determined with a tax advisor and the IRS. The deliverable is a written appraisal report documenting the scope, effective date, evidence, and value conclusion.

Heirs, executors, and their CPAs use step-up basis appraisals when inherited commercial real estate is involved and a documented value is needed for basis discussions. For example, an heir inheriting an interest in a commercial building may need a supported value to discuss the property's basis with their CPA. Not every inheritance results in an upward basis adjustment; that depends on the specific facts and tax rules.

The analysis considers the property's characteristics and condition as of the effective date, market conditions and comparable evidence as of that date, the applicable value definition, and the intended use. The valuation approaches applied depend on the property type and historical data. The conclusion is a supported opinion of value as of the effective date, not a determination of tax basis or a guarantee of any step-up.

We begin by confirming the effective date and the intended use for the basis documentation. After agreeing on scope, we research market conditions and comparable evidence as of that date, analyze the data, and deliver a written appraisal report. Scope, fees, and timing depend on the property and the availability of historical data.