A Theba stepped-up-basis appraisal should document the historical real-estate value cleanly and leave tax treatment to the taxpayer's advisers. New development, utility extensions, or road improvements after the effective date should not be backdated. Stepped-up-basis work should keep the appraisal question narrow: establish fair market value on the applicable date and leave tax conclusions to the appropriate advisers.
The appraiser's role is to develop a supported fair market value for the applicable historical date. The taxpayer, CPA, attorney, or other adviser determines how that value is used for basis and tax reporting. For Theba, the appraisal should consider disciplined broader searches only when it changes the subject's competitive position.
In a stepped-up-basis appraisal, new development, utility extensions, or road improvements after the effective date should not be backdated. The historical value record is stronger when this distinction is supported by sales from the same competitive segment.
The appraisal should support the real estate value on the applicable historical date. It does not calculate capital gains, determine the taxpayer's basis election, or replace advice from a CPA or attorney.
Historical listings, condition evidence, ownership records, permits, and later improvement documentation can help support the earlier fair market value. That evidence helps document the real estate value independently of whatever tax treatment is later applied.
A stepped-up-basis appraisal should document the property and market evidence clearly enough that the historical fair market value can be understood later, even if the property is sold or changed afterward.
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