Stepped-up-basis appraisal in Waddell is fundamentally a historical fair-market-value assignment for inherited real estate. The correct comp set follows density, site utility, and buyer motivation. 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 Waddell, the appraisal should consider development timing only when it changes the subject's competitive position.
For the historical fair market value, the correct comp set follows density, site utility, and buyer motivation. The appraisal should preserve the local market distinction so the historical fair market value can be followed later.
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.
The workfile is stronger when the effective date is paired with records showing the subject's condition, ownership interest, and competitive setting at that time. 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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