How to establish a step-up basis for a condo? (Homestead: sale, HOA fees)

[Avondale15]

We have just inherited a condo in Naples after a death of the family member. We plan to keep it for a while to snowbird, but eventually will probably sell it. I understand that the basis is "stepped-up" as of the day of death, but it isn't clear how to establish the basis.


Should we pay a RE appraiser to do that? Could we ask a local RE agent (or several) for a free estimate? Could we simply arrive at a number by averaging some recent sales? (It is a large complex, and the statistics are readily available.) I don't know how picky IRS is with these basis estimates. Any help would be appreciated.

[JBtwinz]

Definitely seek professional guidance but in our case there was no appreciative gain in the houses value since my mom died so we paid no taxes on the sale after a year.

Sorry for your loss.

You have most likely inquired but use due diligence when inquiring about the HOA fees, and present and future condo capital expenses and also Florida allows for Homestead exemptions for those that reside as primary residence. Your taxes have the possibility to increase dramatically once the homestead exemption is taken away and you are no longer locked in at the 3% cap each year.

[Lillie767]

Looks like any of your suggestions might work.

https://smartasset.com/estate-planni...rited-property

I used the local tax assessor value because that was pretty close to what houses were selling for around me.

[Avondale15]

Thanks, Lillie. It seems that the paid appraisers arrive at their numbers essentially the same way as the real-estate agents do -- by looking at the comparables sold within 3-6 mos. Doesn't look like they add much value for the $$. . . .