An Estate in NYC enters probate in May 2022. The principal assets are two houses in Queens, NY. One will become the primary residence for one Legatee, the other to be sold and proceeds given to the other Legatee.
Probate is delayed three years, requiring action in Surrogate court. The Executor relents and sells the indicated house as requested by the Legatee, but an appraisal hasn't been conducted due to lack of access by a hostile tenant.
Assuming the house was valued at $900,000 by an ACRIS report in the year the Decedent passed away, appreciated to $1,000,000 in three years, and was sold for $960,000, does the Legatee receiving the proceeds need to pay step-up capital gains and what documentation can be provided to validate the amount?
