IRS Estate Tax Appraisal Services

When Do You Need an Estate Tax Appraisal?

When a loved one or family member dies, there is much to do at a time when emotions run close to the surface. If a large estate is involved, one of the things you may need to do is file an estate tax return. If you do, you will probably need an estate tax appraisal, as well.

Federal estate tax returns are required when the fair market value of the real and personal property included in the estate exceeds the annually established unified credit exemption.The exemption for 2019 filings is $11,400,000. If that exemption level is exceeded, IRS Form 706 – U.S. Estate and Generation Skipping Transfer Tax Return must be filed. The personal property included in the estate is recorded on Schedule F – Miscellaneous Property.

What It Takes

You will need to hire a qualified personal property appraiser to prepare an estate tax appraisal for the personal property included on Schedule F. In the event that a single item of personal property is valued at more than $3,000 or a collection of similar properties is valued at more than $10,000, a written, signed estate tax appraisal report with the appraiser’s qualifications must be submitted along with Form 706.

Candace Hill, founder of WorthWise Art and Antiques Appraisers, meets and exceeds the IRS definition of a qualified personal property appraiser and will be happy to assist you with your estate tax appraisal needs.

Tip

There are times when you might consider filing IRS Form 706 and obtaining an estate tax appraisal even if the total value of the estate falls below the exemption level. Doing so establishes a new “stepped-up” basis which may reduce your capital gains taxes in the event you subsequently sell the property. Talk to with your tax professional on this and all matters related to filing an estate tax return.