Date of death appraisal

[Kurt K.]

Hi BPers,

I've inherited some properties this year after my father's passing. I was told that if I sold any of the properties, I would need to have an appraisal which would be calculated based on the day of death before I sell. 

That being said, I have decided to hold these properties for at least 5 years and have not gotten any appraisals and told its not mandatory to get an appraisal until I decide to sell.

And if I do sell them, is it true that I would only have to pay capital gains on the amount that is beyond the appraisal price? 

Any thoughts would be helpful. Thank you.

[JC Conchas]

Disclaimer:
I am not a lawyer:

We inherited property from father in law.
You need to have property appraised at the time of his death to establish their valve at that point in time. You will then get a step up in cost, based on the time of his passing. So that if he bought them for $50k and they appraised at $150k and whenever you decide to sell them, if they sell for $200k, you only pay capital gains on $50k from when they were appraised and you inherited them and what you sold them at. 

Again, I'm not a lawyer/cpa/accountant/mathatician. But this is what happened to us. 

Good luck and sorry for you loss