B. Learn about special use valuation. C. Learn about deductions from the gross estate and the unified credit. Perhaps the easiest way to arrive at a basic understanding of the federal estate tax is to determine when property is valued for federal estate purposes, how property is valued, and what property is included in a decedent's gross estate. As noted, property is valued as of the date of death or, by election, at six months after death.
Property is valued at fair market value, with the major exception being special use valuation.
All ownership interests of the decedent as of the date of the decedent's death are included in the decedent's estate to the extent of the decedent's ownership interest in a particular asset. Supplemental Information Special use valuation is the major exception to the general rule that assets are valued at fair market value as of the descendant's death. There are two valuation methods for determining the special use value of agricultural real estate. The most popular of these methods is termed the rent capitalization approach. The IRS publishes the figures for the denominator every year by FCB district.