# Fair Market Value of inherited house for tax purposes **URL:** \ **Category:** Factual Questions\ **Created:** [March 10, 2021, 7:45pm UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637 "2021-03-10T19:45:20Z")\ **Posts on this page:** 7\ **Page:** 2
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [March 11, 2021, 8:17am UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/21 "2021-03-11T08:17:34Z")
I think it is worth noting that the fair market value of a home is not a specific number that the IRS will try to hold you to. It is a price range and as long as you are in the ballpark I do not think the IRS will be fussed. They are more concerned about people buying a property for $5 or $5 million when it is really worth $50,000. But if you buy the $50,000 place for $45k or $55k I doubt the government will be fussed. Happens all the time. ---
**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [March 11, 2021, 11:44am UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/22 "2021-03-11T11:44:31Z")
> [@Whack-a-Mole](#): > > When the housing bubble popped in 2008 I figured my taxes should go down since my property depreciated in value. > > I think the people at the assessor’s office are still laughing about that. After the '08 crash our assessor’s office did lower our assessed value and taxes a bit. And then we refinanced in spring '09, and a professional assessment for that refinance gave an even lower value. So I took that paperwork to the assessor’s review board and asked them to lower their assessment to match, and they did. ---
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [March 11, 2021, 11:58am UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/23 "2021-03-11T11:58:46Z")
I guess I needed to be more proactive and get outside assessments. The Cook county assessor’s office saw no urgency in finding ways to lower my taxes. Maybe if I did this all on my own and forced the issue with the county they would have had to relent. Seemed a lot of work and time for a not very big benefit without a certainty it would payoff. ---
**Author:** ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)\ **Post date:** [March 11, 2021, 1:33pm UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/24 "2021-03-11T13:33:36Z")
> [@Machine\_Elf](#): > > So I took that paperwork to the assessor’s review board and asked them to lower their assessment to match, and they did. That’s a rarity - nice work! I’m of the opinion that the assessor’s office should be required to purchase any home at assessed value if the owner wants to sell it. Maybe at 80% value, even. Bet we start seeing much more realistic assessments. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [March 11, 2021, 5:40pm UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/25 "2021-03-11T17:40:12Z")
Most places I’ve lived “assessed value” is a purely BS number 25% - 50% different from market price. It isn’t intended to be an actual buy/sell price. A bit like the DJIA, it’s all about having a number that goes up and down by the relevant percentages, and is comparable across long timescales. Not about having a number that is connected to buying/selling reality. And unlike the DJIA, it’s intended to fair-share the tax. So two properties both with “assessed value” of $250K will pay the same tax and will pay half the tax of a property with “assessed value” of $500K. ---
**Author:** ![Brayne\_Ded](https://avatars.discourse-cdn.com/v4/letter/b/e9bcb4/32.png) [@Brayne\_Ded](https://boards.straightdope.com/u/Brayne_Ded)\ **Post date:** [March 12, 2021, 1:42pm UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/26 "2021-03-12T13:42:23Z")
I’m yet to meet a taxman who suggests ways for me to pay lower yaxes. This seems to be an international thing. ☹ ---
**Author:** ![Honolulu\_Lulu](https://avatars.discourse-cdn.com/v4/letter/h/87869e/32.png) [@Honolulu\_Lulu](https://boards.straightdope.com/u/Honolulu_Lulu)\ **Post date:** [March 12, 2021, 2:42pm UTC](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637/27 "2021-03-12T14:42:49Z")
> [@filmore](#): > > Since you sold it right away, the FVM is typically what you sold it for. I concur. If you sold it to a stranger in an arms-length-transaction, the selling price is the FMV. The assessed value is not an issue. [Previous page](https://boards.straightdope.com/t/fair-market-value-of-inherited-house-for-tax-purposes/937637.md?page=1)