Property assessment on inherited house?

Question

I inherited a house from my father, through his irrevocable trust. He died, almost to the day, when we get our taxable assessment from the Michigan township where we live. Should I use the township assessor's value instead of paying an assessor, to calculate the value of his estate? It's simpler, and saves me a few bucks. Or should I get the house assessed now to pay lower taxes on the 'stepped up' value of the home later, when I eventually sell it, probably in 7-10 years. Will getting an assessment on the house's past value be a big headache down the road? A big expense?

Answer 1

A property tax assessment might or might not be anywhere near the actual fair market value of the house, so you should get an assessment of its actual value for estate purposes. And getting an assessment down the road for what its value was now will be close to impossible, so do it now.

Answer 2

How long did your father own this house? If he owned it for many years, the assessor's value is probably FAR below market value. (Research the change in property tax valuation & law from the early nineties, Proposal A I believe it was called).

Trust me, as soon as the township finds out the house has changed owners your property value and the property taxes will go way up. Way, way up. You may need a independent appraisal to help you fight the tax man.

I'll give you a great for instance. I bought my house for $179,000 and the assessor says it is worth $220,000. They could care less that the house sat up for sale for 2 years and no one would buy it at $205,000. My purchase appraisal is helping me to fight the city to get my home valued at a realistic price. But I doubt my taxes will go down, that is the beauty of Michigan tax law.

Good luck and pay for the appraisal!

Answer 3

Well it depends on what you really want to accomplish. If you are looking to lower the taxes, then you need to have the assessor come out and re-assess the property. If you are wanting to know it current value in it's current condition, then you need to hire an appraiser. You might want to consult with a tax advisor or financial advisor to help you make the right choice based on your financial situation now and in the future.

Answer 4

Usually the township assessor's value will not be 100% of the house value. I would spend the money and get an appraisal.

Answer 5

needless to say you do! in case you do no longer, the valuables would be auctioned off for unpaid taxes. you're additionally to blame for maintenance and maintenance on the valuables, utilities, back taxes (if any) and all the huge-unfold expenses of domicile possession. because of the fact that there is not any loan, insurance isn't needed yet is clever because of the fact that if something happens to the valuables you would be to blame for maintenance your self with out insurance. If the domicile became heavily broken, which includes by hearth, you would be liable to have it torn down and in all hazard for having the area cleared in case you weren't insured. There are not any Federal inheritance taxes yet some states nonetheless have them. you will might desire to pay those to determine that identify to be transferred to you. once you ultimately sell the valuables, your fee foundation may be the fee of the domicile on the date of your grandfather's dying, plus any advancements which you made. based how long you own it and whether you reside in it or no longer you have got capital advantageous factors taxes to pay once you sell it.

Answer 6

If I were you, I would go see a good tax accountant and have them help you with your tax plannning. They may be able to suggest something you have not heard of yet to save money. Who knows, maybe they will suggest you rent it for a few years and then do a 1031 exchange to defer the tax. Anyhow, one mistake can cost you bigtime, so I would get a good tax planner and follow their advice.

Answer 7

its crappy