Estate Planning, Trust Administration & Wealth Transfer
Estate & Gift Tax Valuations for Commercial Real Estate
Retrospective. USPAP-Compliant. Built to Survive IRS Review.
What Makes an Estate or Gift Tax Valuation Different
An estate or gift tax valuation is not a current market opinion — it is a defensible conclusion of value as of a specific date in the past, prepared to a standard that holds up if the IRS looks closely. SM RE Inc. prepares USPAP-compliant commercial real estate appraisals for estate administration, trust reporting, and lifetime gifting across Southern California, working alongside the estate attorneys, CPAs, and trustees responsible for the filing.
Three things set this work apart from a standard appraisal. The effective date is fixed — value is measured as of the decedent’s date of death or the date a gift was made, so the analysis relies on market data available at that time, not today’s. The report supports a tax filing and the step-up in basis, which means the conclusion carries direct dollar consequences for the estate and its beneficiaries. And it may be examined by the IRS years after delivery — every comparable, adjustment, and conclusion has to be documented well enough to defend long after the report is filed.
Assignment Types
– 01
Estate Tax Valuations (IRS Form 706)
Fair market value of commercial real estate as of the date of death, supporting estate administration, the step-up in basis, and federal and state estate tax reporting.
– 02
Gift Tax Valuations (IRS Form 709)
Valuations as of the date of transfer for lifetime gifting, family limited partnerships, and LLC-held commercial real estate.
– 03
Fractional & Partial Interests
Valuation of undivided or partial interests in commercial real estate, where the interest conveyed is less than the whole property.
– 04
Alternate Valuation Date
Valuation as of the alternate valuation date — generally six months after the date of death — supporting the estate’s election under Internal Revenue Code §2032.
Engagement process
Consultation — Review the property, the assignment type, the effective date, and the reporting the filing requires.
Retrospective Analysis — A market-supported valuation prepared as of the relevant date, to USPAP and IRS reporting standards.
Delivery — A documented report built to support the filing, with post-delivery support if the conclusion is later questioned.
Frequently Asked Questions
What is a date-of-death appraisal?
A retrospective appraisal that establishes a property’s fair market value as of the day the owner passed away — used for estate tax reporting and to set the step-up in basis.
How far back can a retrospective valuation go?
A valuation can be prepared for a date well in the past; it relies on documenting the market conditions and comparable sales available as of that date.
Can you value a partial interest in a property?
Yes — estates and gifts often involve an interest that is less than full ownership, and the interest conveyed is valued as such.
Do you coordinate with the estate’s attorney and CPA?
Yes — the appraisal is prepared to fit the filing, in direct coordination with the professionals handling it.
Discuss an Estate or Gift Tax Assignment
SM RE Inc. supports estate and trust attorneys, CPAs and tax preparers, trustees and executors, and the families and fiduciaries responsible for administering an estate.