Charitable Donation Appraisals

A qualified appraisal is required when you claim a deduction of more than $5,000 for non-cash property other than certain publicly traded securities. For donations under $5,000, you may not need a formal appraisal but should still maintain documentation supporting your claimed value. The appraisal must be prepared by a qualified appraiser and meet IRS requirements under Treasury Regulation Section 1.170A-17.

A qualified appraisal must meet specific IRS requirements: be prepared in accordance with USPAP standards, completed by a qualified appraiser, include a detailed property description and condition, state the valuation effective date, explain the valuation methodology, provide the appraiser's credentials and competency declaration, state the fair market value as defined under IRS regulations, and be prepared for income tax purposes. The appraisal must also be performed within 60 days before the donation date.

Cost varies based on asset type, number of items, complexity, and reporting requirements. Factors include asset category and valuation complexity, number of items being appraised, Section B reporting requirements, need for additional documentation such as artwork valued at $20,000 or more, and business or illiquid asset analysis. We provide transparent fixed-fee quotes prior to engagement so clients understand costs upfront.

The appraisal must be performed no earlier than 60 days before the date of contribution and no later than the due date including extensions of the tax return on which the deduction is first claimed. If the donation occurs outside the 60-day window from the appraisal date, the report may need to be updated to reflect the correct valuation effective date.

Under IRS regulations, a qualified appraiser must hold recognized appraisal credentials or meet required education and experience standards, regularly prepare appraisals for compensation, demonstrate competency in valuing the specific property type, provide their taxpayer identification number, not be the donor, donee, or a related party, and not charge a fee based on a percentage of the appraised value.

IRS Form 8283, Noncash Charitable Contributions, is used to report non-cash donations exceeding $500. When the claimed deduction exceeds $5,000, Section B must be completed and supported by a qualified appraisal. The form documents the property description, acquisition and donation dates, manner of acquisition, fair market value, donee acknowledgment, and qualified appraiser declaration.

We prepare qualified appraisals for a wide range of donated assets including personal property, fine art, machinery and equipment, business interests, inventory, bullion and precious metals, vehicles, and cryptocurrency. Each asset type requires specialized expertise and market knowledge to determine accurate fair market value.

Yes, we offer expedited appraisal services to help donors and advisors meet IRS filing deadlines, including support for Form 8283 Section B. Rush availability depends on asset type, complexity, and documentation readiness, so early coordination is recommended.