kc_wallace[at]yahoo.com wrote:

- quote -

First, how long was the time between the death and the
offers to purchase? Remember that the value for estate tax
purposes is the date of death. If the value goes up before
it is actually sold, the difference is capital gain.

If the time was fairly short, my understanding is that an
appraisal is only prima facie evidence of a property's
value. If you think it was incorrect and have a good
evidentiary basis for that conclusion, I don't see any
reason why an amended return could not be filed.

Stu

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<kc_wallace[at]yahoo.com> wrote:

- quote -

would a "proper valuation" result in any increased estate
taxes? If so, don't do it. The capital gains tax with a
$400k basis would be less than an estate tax levy on the
additional $400k valuation.

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I'm reviewing a return where an attorney, acting as the
executor of an estate, used the services of an appraiser to
value farm land at what appears to be a value substantially
below fair market value. I have yet to determine if this
was done intentionally to avoid state taxes but, it is more
than likely simply due to an error in valuation. The
numbers are signification ($400K versus $800K). We know
this because there have been two offers by two different
sellers for $800K.

My question is this: if it turns out that the valuation was
simply wrong, can an amendment be done to the estate tax
return and revaluate the property or is there something
under Plaut v. Munford, 188 F.2d 543, 545 (2d Cir. 1951)
where an appraisal for estate tax purposes is "prima facie"
evidence of the property when the income tax is calculated
for a subsequent sale. In other words, could I just take a
position on the tax return as long as I have evidence to
support the corrected fair market value? FYI, the sale of
the property did NOT occur within 6 months of close of the
estate.

Thanks for any input you may have on this matter.

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