Step-up in basis appraisals for inherited LA County property
When real estate passes to heirs at death, its tax basis generally steps up to fair market value on the date of death. A step-up in basis appraisal documents that value so heirs can calculate capital gains when they sell, or depreciation if they keep the home as a rental, on firm ground.
- Tax rule
- IRC §1014: inherited property generally takes a basis equal to fair market value at death
- Who uses it
- Heirs, surviving spouses, successor trustees, and their CPAs
- Effective date
- The date of death (or an elected alternate valuation date)
- Fees
- $299 Basic Desktop or $449 Standard Desktop
- Delivery
- 3+ business days
How the step-up works, in one example
Suppose a Lakewood house bought for $40,000 in 1972 was worth $850,000 when its owner died, and the heirs later sell it for $870,000. Measured from the stepped-up basis, the taxable gain is roughly $20,000 before selling costs. Measured from the 1972 price, it would be about $830,000. The numbers are hypothetical, but the gap shows why the date-of-death value deserves careful support.
Inherited and gifted property are treated differently
Property given away during the owner's life usually keeps the giver's original basis (IRC §1015), so a home deeded to a child before death can carry a much larger built-in gain than the same home inherited. If a transfer happened shortly before a death, or if you are unsure whether a deed counted as a gift, ask your tax adviser before relying on a step-up.
Keeping the home as a rental
Heirs who rent out an inherited house or condo depreciate the building, not the land, starting from the stepped-up basis. If you plan to rent the property, mention it in your request and ask about including an opinion of site value, which your tax preparer can use to separate land from improvements.
Support that stands up later
Basis questions tend to surface years afterward, when the property is sold and a return is reviewed. A report signed by a certified appraiser, built on sales from the right period and kept in the estate or tax file, answers those questions without anyone having to reconstruct the market from memory.
Questions about step-up in basis appraisals
Do both spouses' halves step up in California?
Often, yes. For community property, IRC §1014(b)(6) generally allows both halves to receive a new basis at the first spouse's death. How title was held matters, so confirm with your CPA or attorney.
Is there a deadline for a step-up appraisal?
There is no fixed deadline, but the value must be supported when the sale or depreciation is reported. Retrospective reports can be prepared years later; ordering sooner simply makes records easier to gather.
Does the alternate valuation date apply to us?
Only estates that file a federal estate tax return (Form 706) can elect it, and only when the election lowers both the gross estate and the tax. Your CPA will say whether the report should use the date of death or the date six months later.
Looking for a specific city? Every LA County area page covers local valuation factors.
Reviewed November 2026. This page is general information, not legal or tax advice.
Ready to request an appraisal?
Send the address and the date the value is needed for. We confirm the property and the fee within one business day; the report is delivered in 3+ business days.