Estate & Tax Planners
Why You Need a Qualified Appraiser/Qualified Appraisal for IRS Submission
Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal by a qualified appraiser and complete and attach Form 8283, Section B to your tax return.
All ASA designated appraisers perform qualified appraisals:
- The report is made, signed and dated by a qualified appraiser in accordance with generally accepted appraisal standards;
- The report meets the relevant requirements of Regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 (available at www.irs.gov/irb/2006-46_IRB/ar13.html);
- The report relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property;
- The report does not involve a prohibited appraisal fee; and
- The report includes specific information.
All ASA designated appraisers meet the IRS definition of a qualified appraiser. The individual either:
- Has earned an appraisal designation from a recognized professional appraisal organization demonstrating competency in valuing the type of property being appraised, or
- Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised within the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.
- The individual regularly prepares appraisals for which he or she is paid;
- The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued;
- The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal; and
- The individual is not an excluded individual.
Why You Need an ASA Designated Appraiser
ASA designated appraisers have completed rigorous education requirements, must adhere to high ethical and moral standards and have extensive and specialized appraisal experience to meet your needs. You can be assured that all designated members of ASA:
- Have achieved qualifications superior to those of a State Licensed or State Certified Appraiser;
- Have passed rigorous testing, education and experience qualification standards;
- Maintain higher standards of Ethics and Educational requirements over State certified or licensed appraisers and are subject to disciplinary actions for lack of adherence to these standards;
- Prepare appraisal reports that meets or exceeds the standards of peer review; and
- Have passed a comprehensive exam in addition to the exam required for state licensing.