The short answer
Form 706 asks for the fair market value of property on the date of the decedent’s death. An executor can sometimes elect the alternate valuation date, six months after death, but the IRS instructions allow that only if the election decreases both the value of the gross estate and the estate and generation-skipping transfer taxes payable. Whether it is open to a given estate is a question for the estate’s attorney.
The date-of-death value also matters after the estate is settled. Publication 551 says the basis of inherited property is generally its fair market value at the date of death, or on the alternate valuation date if that was chosen, so the same number can matter again if you later sell.
Both dates are in the past, which means the evidence has to be sales that had already happened by then. An asking price or today’s market is the wrong tool for the job.
The forms that apply
| Form or rule | What it asks for | Read more |
|---|---|---|
| Form 706, Schedule F | The estate tax return reports art, jewellery, watches and similar items as other miscellaneous property at their fair market value on the valuation date. If any item, or any collection of similar items, is valued at more than $3,000, the instructions call for an appraisal by an expert under oath, with a statement of the appraiser’s qualifications. | Our Form 706 guide |
| Basis for the heir | Publication 551 covers basis in inherited property, which is generally the fair market value at the date of death or on the alternate valuation date. It becomes the starting point if the heir later sells. | Our guide to selling and the 28% rate |
What to gather
- The date of death, since every comparable sale has to be on or before the valuation date.
- A list of each item with photos, and any serial numbers, box, papers or certificates.
- Earlier appraisals and insurance schedules, with their dates. Keep them, but an insured value is not fair market value.
- Purchase records and provenance, if any exist.
- Anything sold or distributed since the date of death, with the date it left the estate, because that affects which date applies.
- Comparable sold prices as of the date you need, for the same model or reference.
Worked example: a Rolex Submariner Date 'Hulk' 116610LV as of 15 December 2025
Suppose the date of death is 15 December 2025. Here is what the same reference sold for at auction in the twelve months up to that date, using only sales that had already happened.
| Sale date | House | Sold price (USD) | Sold in | Lot |
|---|---|---|---|---|
| 10 Dec 2025 | Sotheby's | $21,590 | USD 21,590 | View |
| 10 Dec 2025 | Sotheby's | $20,320 | USD 20,320 | View |
| 19 Nov 2025 | Christie's | $20,481 | CHF 16,510 | View |
| 1 Oct 2025 | Sotheby's | $17,889 | EUR 15,240 | View |
| 24 Sep 2025 | Phillips | $19,583 | HKD 152,400 | View |
| 23 May 2025 | Bonhams | $20,432 | HKD 160,000 | View |
| 31 Mar 2025 | Sotheby's | $19,050 | USD 19,050 | View |
| 17 Dec 2024 | Sotheby's | $21,605 | HKD 168,000 | View |
How to read this. These are sold lots only, not estimates and not asking prices, matched on the model or reference. The USD figure is the price the house recorded, converted at a rate near the sale date; the "Sold in" column shows the original currency. Whether a recorded price includes the buyer’s premium depends on the house. A lot listed under two links is counted once. Condition, completeness, dial and provenance move individual prices, so a range is a starting point and not an opinion of value. Figures pulled from our data on 11 November 2026.
The point of the example is that the valuation date decides which sales count. This is for illustration only; which date an estate may use is a legal question, and the appraisal itself has to address the actual piece.
Two ways to go from here
See what it sold for
The free Price Check shows real sold prices for the same model, with dates, houses and a low, median and high.
See what it sold forNeed it in writing?
Open the ALT/FNDATA Wealth app and tell us the piece and what it is for.
Request a valuation report or a qualified appraisalTools that fit
Frequently asked questions
What is inherited art worth for tax purposes?
For the estate it is the fair market value on the date of the decedent’s death, reported on Form 706, Schedule F where a return is filed. Fair market value is the price a willing buyer and a willing seller would agree on, and for collectibles that is anchored in comparable sold prices.
What is the alternate valuation date?
It is six months after the date of death. The Form 706 instructions say property sold or distributed within those six months is valued on the date it left the estate, and that the election is not available unless it decreases both the value of the gross estate and the estate and generation-skipping transfer taxes payable. Your estate attorney decides whether it applies.
Does an estate need an appraisal for art and collectibles?
The Form 706 instructions say that if any item, or any collection of similar items, is valued at more than $3,000, you attach an appraisal by an expert under oath along with a statement of the appraiser’s qualifications. Confirm the current rule with the estate’s attorney.
What is my basis in a piece I inherited?
Publication 551 says the basis of inherited property is generally its fair market value at the date of death, or on the alternate valuation date if the estate used it. Your CPA confirms how it applies to your piece.
Can I see what a piece sold for as of a past date?
Yes. ALT/FNDATA can look at a piece as of a past date using only the sales that had happened by then. Start with the free Price Check to see recent sold prices.
Sources
- IRS Instructions for Form 706 (Rev. July 2026)
- IRS Publication 551, Basis of Assets
- IRS Publication 561, Determining the Value of Donated Property (Rev. December 2025)