Technical topics regarding tax preparation.
27-Mar-2023 10:54am
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I have a client who inherited a condo from his grandmother who passed away. In 2018, the condo was purchased for 50K. In March '22 the client inherited the condo. He did not have a valuation done. I had a realtor friend pull a comp report and condos of similar size and shape sold for 35K between October '21 and May '22.
Since the FMV is less than the cost basis, is FMV still the determining factor? Kind of stinks in this situation.
27-Mar-2023 11:44am
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FMV on date of death. Doesn't matter if the adjustment is up or down.
~Captcook
27-Mar-2023 12:48pm
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It seems odd that the value would drop so much.
You may want to get a more formal value opinion or do your own research.
Steve
27-Mar-2023 11:25pm
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In general, at least in the Metro Detroit area, condo appreciation has been much less than single family homes. I suspect that would not be the case in highly dense, prime areas such as NYC or San Francisco.
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