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Financial Planning / Tax Strategies


Subject:  Re: Loss on rental house Date:  11/26/2012  10:03 PM
Author:  ptheland Number:  116984 of 127624

My thinking is that they would go to almost zero effort disallow such an assessment.

Keep in mind that it takes almost zero effort to disallow pretty much anything on a tax return. All the auditor has to say is that figure is one used for property tax purposes and by it's nature does not necessarily reflect the FMV of the property.

The gold standard for FMV of real estate (short of an arm's length transaction) is an appraisal by a real estate appraiser.

I often request that my clients get an appraisal when the valuation amount is at all in question and the tax dollars involved justify the cost.

In my area, an appraisal costs about $400. The last client who needed an appraisal had over $10k of tax dependent on the appraisal. The appraisal fee was less than my tax prep fee. She was happy to get the appraisal for the peace of mind.

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