Any refund on inheritance tax paid on Real Estate between the estimated price and sold market price difference on tax paid? 8 Answers as of September 13, 2012

Any refund on inheritance tax paid on Real Estate between the estimated price and sold market price difference on tax paid? With both of my parents deceased. My father the last to past was in 12/09. Inheritance tax was filed within 3 months for the inheritance tax discount. My question pertains to the Real Estate portion "house" my parents owned. I use the estimated assessment tax cost with preparing the PA inheritance tax. The house recently sold $147,000 in 6/12. It was in need of updating to prepare it for market. It needed 10K in improvements, new kitchen and bath. I use an estimated cost basis of $150,000 when preparing the PA inheritance taxes. Amongst improvements, during the 30 month period there was utilities, taxes, insurance and closing costs. Can I request a refund for the difference between the assessment price filed on tax paid and the actual market price sold, along with any expenses with maintaining before sale.

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Neal M. Rimer, Esquire
Neal M. Rimer, Esquire | Neal M. Rimer
Normally, your tax basis and additions to basis only have an effect on your gains and losses upon sale for income tax purposes. I have no idea what the tax is in PA for inheritance. I don't know its significance... but, if you take the tax loss from the sale I'm guessing that you might be OK. I presume you got a step up in basis upon your father's death to fair market value.
Answer Applies to: California
Replied: 9/13/2012
Law Offices of Charles R. Perry
Law Offices of Charles R. Perry | Charles R. Perry
This question is best directed to an attorney in Pennsylvania, or other state where the inheritance tax was paid. Good luck.
Answer Applies to: California
Replied: 9/13/2012
James Oberholtzer, Attorney at Law
James Oberholtzer, Attorney at Law | James Oberholtzer
I am not an expert on Pennsylvania law. You will need to consult an Penn lawyer to find out the answer for Penn law. I can say that, in general, your problem will be to show that the date of death value (that you used on the return) was too high. The fact that it sold for less later could mean that the market value simply went down with time. You will need proof that the fmv on the date of death was too high. Generally this is done with a professional appraisal. Since you should have had a professional appraisal to start with for the return, you should go back to that same person and ask if they made a mistake.
Answer Applies to: Oregon
Replied: 9/13/2012
Law Office Of Victor Waid
Law Office Of Victor Waid | Victor Waid
Please consult your CPA or tax attorney.
Answer Applies to: California
Replied: 9/13/2012
Law Offices of Robert H. Glorch | Jeffrey R. Gottlieb
You need to send this to a PA attorney, not IL.
Answer Applies to: Illinois
Replied: 9/13/2012
    Frederick & Frederick PLC | James P Frederick
    Unless PA law is far different from Michigan law, I do not think they will do this. In fact, they may force you to use the other value for "tax purposes." Michigan does this for Inventory purposes in probate. You can either use two times SEV or pay to have an appraisal done. The SEV can be WAY higher than actual value, especially in this economy. If the house sells for $100k less than the inventory value, you do not get anything back. Counties and states are really hurting for revenue, these days. They will aggressively reach for whatever they can.
    Answer Applies to: Michigan
    Replied: 9/13/2012
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    This is a question for a Pennsylvania lawyer.
    Answer Applies to: California
    Replied: 9/13/2012
    THE BROOME LAW FIRM, LLC
    THE BROOME LAW FIRM, LLC | Barry D. Broome
    If the first filing was an estimate and the actual tax is to be less then the final return should show the correct tax due and a refund requested. Your financial plan is not complete until it is co-ordinated with your estate plan. Will your family be provided for when you are gone? Without a Will, the court will decide.
    Answer Applies to: Georgia
    Replied: 9/13/2012
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