Selling Inherited Commercial Property - For capital gains tax calculations, Is a formal appraisal required?
Per the title, our realtor mentioned he can provide a Broker Opinion of Value for the property, would the IRS accept that? Or is a formal appraisal ($$$) required come tax time for calculating the stepped up basis for capital gains.

State is California.

Thank you very much!
[{"id": "evis87t", "text": "The broker wants to give you a BOV so he/she can list your building and earn a fee at some point.", "replies": [{"id": "evmi3pd", "text": "We already have a realtor, and it's currently listed. They mentioned the BOV as a possibility to avoid paying the thousands for a formal appraisal.", "replies": [], "depth": 2}], "depth": 1}, {"id": "evisy93", "text": "Capital gains tax is determined by your capital gains: sales price minus cost basis.  The actual property value does not play into the equation unless you are distributing the property for a LLC to a member (or similar business to personal transfer).", "replies": [], "depth": 1}, {"id": "evitdbx", "text": "Contact an attorney or licensed CPA for your states rules. In most cases a formal appraisal is required.", "replies": [], "depth": 1}, {"id": "evjfoud", "text": "What makes you think there are capital gains since your inheritance?", "replies": [], "depth": 1}, {"id": "evk4vmz", "text": "The basis for capital gains will be set from the date of death. An appraisal will set the tax basis as of that date. If it\u2019s farther in the past a retrospective value will be required. If it\u2019s pretty recent the cap gains tax should be very minimal to none. An estate attorney or CPA should be able to give better guidance.", "replies": [], "depth": 1}, {"id": "evqg2ld", "text": "Geez, you need the market value at the time of inheritance.\n\n&amp;#x200B;\n\n[https://www.realestatelawyers.com/resources/real-estate/commercial-real-estate/inheriting-commercial-real-estate](https://www.realestatelawyers.com/resources/real-estate/commercial-real-estate/inheriting-commercial-real-estate)", "replies": [], "depth": 1}]