TL;DR
To get a step-up in basis, order a certified date-of-death appraisal that documents the home's fair market value as of the date the owner passed. That value becomes the heirs' new tax basis, which can dramatically reduce capital gains tax when the home is eventually sold.
To get a step-up in basis appraisal, you order a certified date-of-death appraisal that documents the property's fair market value as of the date the owner passed away. When someone inherits a home, the tax basis generally resets, or steps up, to that date-of-death value. Getting it documented by a qualified appraiser protects the heirs, because that number sets the capital gain when the home is later sold. For a long-held Greater Boston home, the difference between a documented step-up and a guess can be substantial.
For a long-held Greater Boston home, the difference between a documented step-up and a guess can be substantial, as shown in capital gains and selling a long-held home with a retrospective appraisal.
When someone inherits a home, the tax basis generally resets, or steps up, to that date-of-death value, the benefit explained in the stepped-up basis tax benefit most heirs don't know they have.
How do I get a step-up in basis appraisal?
Order a certified date-of-death appraisal from a qualified appraiser. It establishes the home's fair market value as of the date of death, which becomes the heirs' stepped-up basis. This is retrospective work, so the appraiser values the home as of that past date using comparable sales from that period.
You do not need to wait for the full estate to settle; the appraisal only needs property access and a qualified appraiser.
What is a step-up in basis, in plain terms?
When you inherit a home, your tax basis generally resets to its value on the date of death, rather than what the original owner paid. If they bought decades ago and the home appreciated, the step-up erases most of that built-in gain, so a later sale near the date-of-death value produces little or no capital gains tax.
The catch is documentation: to claim the stepped-up basis confidently, you need the date-of-death value on record.
Why does the appraisal matter so much?
Because the date-of-death value is the number the heirs' future capital gain is measured against. Without a documented appraisal, the basis is a guess, and a low or unsupported basis can mean paying tax that a proper appraisal would have avoided. The appraisal is protection against an avoidable bill years later.
It is far easier and stronger to document the value now than to reconstruct it under audit pressure later.
What if the owner passed a while ago and no appraisal was done?
You can still get one. A retrospective appraisal can establish the value as of the past date of death using the evidence from that period. It gets harder as time passes and records age, so the sooner it is commissioned, the stronger the result.
A retrospective appraisal can establish the value as of the past date of death using the evidence from that period, the same discipline described in how market conditions on the date of death affect taxable value.
This is a common situation, and a qualified appraiser can reconstruct a defensible value for the correct date.
Step-up in basis appraisal, at a glance
QuestionAnswerWhat to orderA certified date-of-death appraisalEffective dateThe date of deathWhat it setsThe heirs' stepped-up tax basisWhy it mattersReduces capital gains tax at future saleIf it is lateA retrospective appraisal can still establish it
If you have inherited a Greater Boston home, order a date-of-death appraisal to document the step-up in basis before you sell. It is one of the most valuable, and most overlooked, tax protections heirs have. Aladdin Appraisal produces defensible date-of-death valuations across Greater Boston. This is general information, not tax advice; confirm how the rules apply to you with your CPA.
Aladdin Appraisal produces defensible date-of-death valuations across Greater Boston, including step-up in basis appraisals in Wellesley and throughout Norfolk County.
FAQ
How do I get a step-up in basis appraisal?
Order a certified date-of-death appraisal from a qualified appraiser. It documents the home's fair market value as of the date of death, which becomes the heirs' stepped-up basis for future capital gains.
What is a step-up in basis?
When you inherit a home, your tax basis generally resets to its date-of-death value instead of the original purchase price. This can erase most of the built-in gain, reducing capital gains tax when you sell.
Can I still get a step-up appraisal if the owner passed years ago?
Yes. A retrospective appraisal can establish the value as of the past date of death using evidence from that period. It gets harder as time passes, so order it sooner rather than later.
Does a step-up in basis appraisal cost a lot?
The fee is small next to the capital gains tax a documented basis can save. For a long-held, appreciated home, the appraisal often pays for itself many times over.
About the author: Adam Wiener is the principal appraiser and owner of Aladdin Appraisal, a certified Massachusetts real estate appraisal firm serving Greater Boston across Middlesex, Suffolk, and Norfolk counties. Reach the team at (617) 517-3711 or info@aladdinappraisal.com.
NAP: Aladdin Appraisal | 187 Auburndale Ave, Auburndale, MA 02466 | (617) 517-3711 | info@aladdinappraisal.com | https://www.aladdinappraisal.com | Service area: Greater Boston across Middlesex, Suffolk, and Norfolk counties, MA
This article is general information, not legal, tax, or valuation advice for your specific property. For a formal opinion of value, order an appraisal; for legal or tax questions, talk to your attorney or tax professional.
