Inherited property · Buffalo & Erie County
The Importance of Date-of-Death Valuations
Understanding what an inherited home was worth when its owner died helps inform estate administration, tax documentation, and decisions about the property.
A market analysis and a formal appraisal serve different purposes. Here is how they fit into New York’s estate process.
Property valuation and preparation for an inherited home.
Two questions about value
The same home, viewed at different dates
A date-of-death valuation looks back at a specific historical date. A current market analysis helps you decide how to prepare and price the home when it is time to sell.
Then · The owner’s date of death
Historical property value
Helps document the property’s value for estate administration and can help establish inherited property’s tax basis.
Confirm the valuation date and documentation needed with the estate’s attorney and tax professional.
Now · When you are ready to sell
Current market position
Helps the family set expectations and compare preparation costs with the potential effect on the selling price.
Explore inherited property solutions and the Erie County selling guide.
01 · The estate inventory
Valuation and New York’s estate process
In New York, the court appoints an executor in a probate proceeding or an administrator in an administration proceeding. Letters Testamentary or Letters of Administration document that appointment. Ask the estate’s attorney who has authority to sell the property and whether any restrictions apply.
The Inventory of Assets form (Form I-1) generally must be filed within nine months after letters are issued, unless the court directs otherwise. Failure to file can affect the fiduciary’s authority and the allowance of commissions or legal fees.
For a wider look at authority, documents, and preparation, read our guide to selling an inherited house in Erie County.
Understanding the lettered value categories
Form I-1 uses lettered value categories for real estate and other asset types, as well as total estate assets. Two examples are:
| Category | Value range |
|---|---|
| F | $250,000 to under $500,000 |
| G | $500,000 or more |
Documenting the property’s value helps the attorney prepare the inventory and determine any additional court filing fees.
Official guidance: New York Courts, Rule 207.20, and the administration process.
Keep the property tasks organized
Use the Executor Property Checklist alongside your estate documents to plan the practical work at the house.
02 · Market analysis and appraisal
Choose the valuation for its purpose
Use market analysis for preparation and pricing decisions. For income-tax basis documentation, obtain a formal date-of-death appraisal from a certified fee appraiser and review it with your tax professional.
A comparative market analysis
A comparative market analysis (CMA) from a probate real estate professional such as Dan Myers can help set expectations for heirs and guide decisions about selling the home.
Dan can help the executor compare repair and preparation costs with the potential effect on the property’s value. A broker price opinion (BPO) is another type of broker valuation. A CMA or BPO is not a formal appraisal and should not replace a certified appraiser’s date-of-death report for income-tax basis documentation.
See how property preparation was coordinated in the West Seneca inherited-home case studies.
A formal date-of-death appraisal
For income-tax basis documentation, we recommend a formal date-of-death appraisal from an independent, state-certified real estate appraiser—a certified fee appraiser.
The appraisal can be retrospective: prepared after the death, with the owner’s date of death as its effective valuation date. The appraiser researches the property and market conditions as they existed on that date.
Keep the report and supporting records with your tax documents. They help substantiate the value used for inherited property’s basis if the IRS questions it during an audit. Your tax professional should confirm the documentation and reporting requirements for your situation.
For related property services, explore the local professionals listed on our site.
Where should you start with the property?
Talk with Dan about the market information and preparation decisions you need help with. A certified fee appraiser prepares the formal date-of-death report; your tax professional guides the tax reporting.
03 · Inherited property and tax basis
How date-of-death value relates to capital gains
Inherited property’s tax basis is generally its fair market value at the owner’s date of death. This is often described as a “stepped-up basis” when the value has increased. The adjustment can also reduce basis if the property’s value has fallen.
For appreciated property, this adjustment can remove pre-death appreciation from the heir’s gain calculation. Exceptions and an elected alternate valuation date can apply.
When the property is sold, taxable gain generally depends on the amount realized from the sale compared with the property’s adjusted basis. Improvements, selling expenses, and other adjustments can affect that calculation. Ask your tax professional to determine the correct basis and reporting requirements.
Before listing, compare your options in our inherited house selling guide. Your tax professional can explain how the sale relates to your basis.
Keep the formal date-of-death appraisal and supporting records to substantiate the historical value used for your income-tax basis. An agent’s market analysis should not be used as a substitute for this appraisal. Ask your tax professional to confirm the basis you must use, including any applicable estate-tax valuation consistency rules.
Official guidance: IRS guidance on inherited property and Publication 551, Basis of Assets.
04 · A different tax
Capital gains and New York estate tax
Capital gains tax concerns a taxable gain on a sale. Estate tax concerns the taxable estate. These are separate calculations.
For deaths occurring in 2026, New York’s basic exclusion amount is $7,350,000. The applicable estate-tax credit phases out as the New York taxable estate rises above that exclusion. No credit is allowed when the taxable estate exceeds 105% of the exclusion—the effect often called New York’s estate tax cliff.
Your accountant or tax attorney should assess the estate’s filing requirements, taxable value, and any deductions or other applicable rules. The year of death matters when choosing the exclusion amount.
Official guidance: New York State estate tax information and Tax Law §952.
Dates of death in 2026
$7,350,000
New York State basic exclusion amount
The estate-tax credit phases out above the exclusion and is unavailable above 105%.
This is an estate-tax threshold, not a capital-gains exemption.
Meet Dan Myers
Probate real estate support
Your next step
Talk with Dan about the property’s value
Dan Myers can help you understand the property’s market position and compare preparation and selling options. Your estate attorney and tax professional can confirm what valuation documentation is required.
Learn how Dan works with families in the inherited-home case studies, or read client reviews.
General educational information. Consult your accountant or a tax attorney for advice about New York State and federal tax matters. Dan Myers does not provide legal or tax advice.