Retrospective commercial valuations for tax purposes
You inherited a half interest in an Escondido strip center. What value sets your new basis, and does valuing a half interest change the question?
Define the tax adviser’s requested interest and effective date before reconstructing the property’s earlier operation.
A retrospective report examines the property or interest at a specified past date. Identify exactly what passed to the heir and what the tax adviser needs documented. Half of a property's physical area, half its ownership interest, and half an entity interest are different descriptions.
For the Escondido center, assemble the leases, vacancies, expenses, and condition evidence from the effective date. Current rent advertisements do not establish the earlier contracts. Record later events in a chronology so they are not silently treated as past conditions.
Kevin's role is the agreed valuation assignment. The adviser determines basis treatment, elections, tax-return requirements, and how the report is used. A value opinion does not promise a lower tax bill or resolve return eligibility.
What the cited rules address
Section 1014(a) generally identifies basis by date-of-death fair market value, with statutory alternatives and exceptions (26 U.S.C. 1014(a), GPO edition). It defines a basis rule, not a blanket instruction to buy a private appraisal.
Section 2032 permits alternate valuation only under its conditions, including a decrease in both the gross estate and the estate/GST tax (26 U.S.C. 2032, alternate valuation). Property not disposed of within six months uses the six-month date; an earlier disposition uses its disposition date. This is not permission to choose any past date. Your tax adviser specifies the applicable date and interest.
A charitable contribution is a different tax use
If the question concerns donating real estate to charity, identify the donated interest and contribution date separately from inherited-property basis. The Form 8283 instructions describe qualified-appraiser education and experience, appraisal contents, and timing for the applicable charitable use. A Certified General license alone is not a promise that every charitable qualification has been met.
Section B generally covers noncash charitable deductions above $5,000 per item or group of similar items, excluding items reported in Section A (IRS Form 8283 instructions, Section B). Section B calls for a written qualified appraisal by a qualified appraiser; Form 8283 is a summary, not the appraisal. These are charitable-contribution rules, not family-gift rules or a KO fee.
Bring or describe
You do not need every document to start. Identify what is available and what still needs to be obtained.
| Bring or describe | Why it helps |
|---|---|
| Tax adviser’s interest and date instructions | Avoid assuming a whole-property value answers a partial-interest question. |
| Ownership records and APNs | Identify what was inherited and which parcels support the interest. |
| Historical leases, rent roll, and expenses | Reconstruct the income-producing property as of the selected date. |
| Dated condition evidence and event chronology | Distinguish facts at the valuation date from later repairs or transactions. |
Match the parcel to the assignment
Use the San Diego County Assessor/Recorder/County Clerk’s property-information guidance to locate the APN and existing parcel records for the property in your request. A tax-roll value or recorded sale is something to investigate, not an appraisal conclusion. The APN does not establish legal use or identify every ownership right.
San Diego County property informationWhat happens next
- Explain the tax use, inherited interest, requested date, and records for the scope and estimate.
- Review the engagement letter against the adviser’s intended-user and reporting instructions.
- Research the historical property and inspect what can be observed now, documenting the difference.
- Receive a retrospective report that identifies the evidence and assumptions supporting that date.
Ask for a written scope, fee and delivery estimate for your property, intended use and deadline.
Related services
Estate commercial property scope. Use this when the estate representative needs the value for a specified estate decision.
Probate inventory versus private report. Use this when counsel is distinguishing the probate referee’s inventory work from a separate tax use.