IRS Step-Up Appraisals in Provo, UT
Retrospective date-of-death valuations for IRS estate tax filings and stepped-up basis calculations. Protect your inheritance with proper documentation.
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 Provo?
IRS step-up appraisals in Provo typically range from $450 to $900, 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 Provo 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 Provo 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 Provo 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 Provo and Utah 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.
Our IRS Step-Up Appraisal Services
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 Provo'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 Utah.
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 Provocoordinates 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.
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.
Provo property preparation
We inherited a Provo house and may sell. What sets our basis?
The county tax notice does not select inherited-property basis. Section 1014 supplies a general death-date rule, with exceptions and possible section 2032 treatment when an estate makes the required election. Ask the tax adviser which rules and date apply, then preserve the serial number, notice year and dated condition records for that date.
The tax date is not the county assessment date
26 U.S.C. §1014(a): subject to its exceptions, inherited-property basis is generally fair market value at death, or the applicable alternate date when an election under §2032 applies. The IRS inherited-property FAQ explains that the general death-date rule can apply whether or not the executor files Form 706. These provisions do not impose an appraisal on every inheritance. The adviser must determine the actual property's basis rules and exceptions.
26 U.S.C. §2032(a), (c) and (d): an executor's alternate-valuation election must reduce both the gross-estate value and the applicable estate/GST tax after credits. Retained property generally uses the six-month date; property disposed of within that period generally uses its disposition date, with special rules for time-dependent interests. The election is made on the estate-tax return and is irrevocable. The current Form 706 instructions, Part III, line 1, explain the election. An heir cannot simply choose a later date or apply it to one selected asset.
Official source text checked October 5, 2026. Federal Code links identify the 2023 published edition and are read alongside current IRS guidance. This explanation does not determine legal or tax treatment for an individual matter.
County parcel record
Utah County Assessor links to Land Records and a parcel map. The searches accept an address or parcel serial number and provide property details. Save the identifier for each parcel involved.
Limit: The Assessor values property for tax purposes. The record is not a commissioned appraisal for your estate, divorce, sale or other use.
Valuation notice details
Utah County Auditor explains the parcel serial number, year of last property review, and the separate market-value and taxable-value fields on the notice. Identify which field and year you are reading.
Limit: Taxable value includes applicable exemptions or adjustments. The review date tells you when physical components were updated in the county system; it does not prove condition at your requested valuation date.
Bring or describe
- The effective date and written tax-use instructions.
- The notice review year and parcel serial number.
- Photos or renovation records, with later work identified separately.
Public source pages checked . This guide explains records to assemble; no individual property, ownership or valuation was researched.
Discuss this property and purposeCompare the related purposes
If the personal representative is also preparing an estate inventory, read Probate Valuations to keep the inventory purpose separate from tax-basis instructions.
If heirs need a value for a proposed transfer or beneficiary discussion, read Estate Appraisals to identify that intended use rather than assume the tax scope covers it.