Fayetteville, NC asked in Tax Law and Real Estate Law for North Carolina

Q: What is the easiest way to determine the value of a property that I gave my daughter, to report on a 709 tax form?

I gave my married daughter a rental property that I owned for 45years…will the IRS accept a real estate market analysis as the value on a 709 form? Can the tax value be used?

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1 Lawyer Answer
James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: When determining the value of a property you gave to your daughter for reporting on a 709 tax form, it's important to follow IRS guidelines accurately. While a real estate market analysis can be a helpful reference, it might not be sufficient on its own.

The IRS typically requires a qualified appraisal conducted by a certified appraiser to establish the fair market value of the property. This appraisal should consider various factors, such as the property's condition, location, comparable sales, and any specific circumstances that may affect its value.

Using the tax value or a market analysis alone might not be accepted by the IRS and could lead to issues with your gift tax return. To ensure compliance and accuracy, it's advisable to consult with a tax professional or appraiser who can provide guidance on obtaining a proper appraisal and properly reporting the gift on the 709 tax form. This approach will help you meet IRS requirements and avoid potential tax liabilities in the future.

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