"Bob" <rkay48_notthis[at]yahoo.com> wrote:

- quote -

Like most tax questions, it depends. Since it has only been
a year, if there have been no substantial changes in
property values in your area, your basis will be pretty
close to your selling price. A letter from a Real Estate
Agent as to the value a year ago wouldn't hurt. Often this
will result in a loss on the sale to the extent of selling
expenses. Anything that generates a loss greater than that
I'd want a lot more proof.

--
Jo Firey

"Life is not measured by the number of breaths we take, but
by the moments that take our breath away."

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Bob wrote:

- quote -

I would find it hard to believe that the condo wouldn't have
had to have been listed on the 706 or on the probate report.

Of course, it's POSSIBLE that there was no 706 (or state
equivalent) because the estate's total assets were below
$1.1 million, and that the condo passed outside of probate,
but....

See my recent post question on retroactive appraisals for
a coin collection (which was noted in the probate report,
although no 706 was needed) for more information.

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My wife inherited a condo from her mother in October 2002
and is now selling it (September 2003). In order to
calculate capital gains, we need to come up with a cost
basis at the time of inheritance. We have some comparables
for similar condos that sold in the past year or so, but
none are exactly the same.

While I can use the information I have to estimate a value
at the date of inheritance, I wondered if there is a better
way to do this. Do folks hire a appraiser to value property
in the past? If I just estimate this myself, should I
provide some details on my estimate with our 2003 tax
return, so simply use the calculated value in Form D?

Bob, MD

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