How to Get a Property Appraised for AB 2016 in California

To get a property appraised for AB 2016 in California, the trustee or estate representative must hire a certified residential appraiser who complies with IRS and probate court standards. The appraisal must reflect the property's fair market value at the time of death, as required by AB 2016 to determine the primary residence exclusion from capital gains taxes.

How to Get a Property Appraised for AB 2016 in California

With the recent implementation of AB 2016, many California families are asking the same question:
How do I get a proper appraisal to claim the capital gains exclusion?

Whether you're inheriting property in Los Angeles or acting as a trustee after a loved one’s passing, this step is crucial for protecting your equity.

Let’s walk through how AB 2016 works — and how to ensure your property appraisal meets the state’s new requirements.

What Is AB 2016?

Assembly Bill 2016 (AB 2016), signed into law in 2024, affects inherited real estate in California by aligning state capital gains exemptions with federal rules — only if proper documentation is provided.

If you inherit a primary residence and plan to sell it, AB 2016 allows you to exclude capital gains from California state taxes — but only if you prove the home’s fair market value at the time of death.

This is where an accurate appraisal becomes essential.

When Is an Appraisal Required Under AB 2016?

You’ll need a death-date appraisal if:

• You inherit real estate in California

• You plan to sell the property

• You want to claim the AB 2016 exclusion on California capital gains

Without a valid appraisal, you may owe thousands in state taxes — even if the home was your parent's primary residence and you sell quickly after inheriting.

How to Get a Property Appraised for AB 2016

Step 1: Hire a Qualified Real Estate Appraiser

Look for a California-licensed Certified Residential Appraiser who understands:

• Probate property valuation

• IRS and California Board of Equalization standards

• Date-of-death valuations

💡 Tip: Make sure they include the effective date of valuation as the date of death — not the date of inspection.

Step 2: Request a “Date-of-Death” Appraisal

The appraisal must reflect what the property was worth on the date the decedent passed away — not today’s value.

Most AB 2016 filings will be months or even a year later, so this distinction is key.

Ask the appraiser to include:

• Condition of the home at time of death

• Market comps from the appropriate time frame

• Detailed narrative analysis supporting value

Step 3: Provide the Right Property Info

You or your real estate agent should prepare:

• Photos of the property as it existed at the time of death

• Any repair notes, if applicable

• Details about the owner’s use (was it their primary residence?)

If you already made updates or renovations, be upfront — the appraiser must know what the home looked like before any work was done.

Step 4: Confirm It Meets AB 2016 and IRS Standards

A valid appraisal for AB 2016 must:

• Use Uniform Standards of Professional Appraisal Practice (USPAP)

• Be signed by a Certified Residential Appraiser

• Include a narrative summary, not just a desktop or drive-by

• State clearly that it's a date-of-death or retrospective appraisal

Can You Use a Realtor’s CMA Instead?

No. A Comparative Market Analysis (CMA) from a real estate agent does not meet the AB 2016 legal standard.

Only a licensed real estate appraiser can issue a death-date appraisal that is accepted by:

• The IRS

• The California Franchise Tax Board

• Probate courts

How Much Does an AB 2016 Appraisal Cost?

In Los Angeles, expect to pay:

Appraisal Type Cost Range

Standard Residential $500–$750

Complex Property $750–$1,200+

Multi-Unit / Income $1,000–$1,800+

The cost depends on:

• Property size and location

• Level of detail required

• Appraiser’s experience and backlog

Need help? The Borges Real Estate Team works with local appraisers who specialize in AB 2016 appraisals — including homes in Pasadena, Los Angeles, and Orange County.

Why Is This So Important?

Let’s say you inherit a house in Highland Park, Los Angeles.

• Your parent bought it for $180,000 in 1992

• It was worth $1.3M when they passed in 2023

• You sell it for $1.35M in 2025

If you don’t document the $1.3M step-up in basis, California may tax you on nearly $1.2M in gains.

But if you have a qualified appraisal at the $1.3M value, your capital gain is only $50,000 — and you may owe zero state tax under AB 2016.

Local Insight: Appraisals in Los Angeles & Pasadena

Homes in L.A. County and Pasadena have skyrocketed in value over the past 20 years. That’s why accurate death-date appraisals are critical.

Local appraisers should be familiar with:

• Probate sales

• Historic and mid-century home valuation

• The nuances of L.A.’s submarkets

We’ve seen families lose out on six-figure tax savings due to an incorrect or missing appraisal.

Need help getting the right appraisal for AB 2016?
We work with trusted professionals across Los Angeles County.

👉 Contact The Borges Real Estate Team to avoid costly mistakes.