Craig in Oregon
Member
- Joined
- Jan 17, 2002
- Professional Status
- Retired Appraiser
- State
- Oregon
Patti --
Fear not.
Just did one this spring.
Seems all that is needed by the IRS is the depreciated value of the improvements which will be burned. No need to do a URAR, nothing but the improvements that will be donated (burned) is important. There are no comps for just the donated house portion, right?
Obviously you will put in the report that this is not an appraisal only an independent third party opinion for this specific use (donation to a fire department). The IRS will obviously be a reader of the report.
I did a full interior inspection with interior/exterior pix all around, a fast sketch, and ran it through the cost approach only. Depreciation (this was a house built in 1920's with a "typical" for the era floor plan) can be figured by percentage using other older home sales and current land values to get "depreciated contributory value". Any updating over the years offsets the inevitable
pull of gravity for 80 year old homes. You want to consider foundation,
siding, roof and other maintenance that's due.
Document the report with your pix and show the homework and that's it. I put on a cover letter calling attention to the fact that land, barns, outbuildings, wells, septics, utilities were not involved.
Fee? $300, 3.5 hours work including drive time.
PS the interior pix help; after the house is burned the IRS will find it difficult to dispute you.
Craig in Oregon
Fear not.
Just did one this spring.
Seems all that is needed by the IRS is the depreciated value of the improvements which will be burned. No need to do a URAR, nothing but the improvements that will be donated (burned) is important. There are no comps for just the donated house portion, right?
Obviously you will put in the report that this is not an appraisal only an independent third party opinion for this specific use (donation to a fire department). The IRS will obviously be a reader of the report.
I did a full interior inspection with interior/exterior pix all around, a fast sketch, and ran it through the cost approach only. Depreciation (this was a house built in 1920's with a "typical" for the era floor plan) can be figured by percentage using other older home sales and current land values to get "depreciated contributory value". Any updating over the years offsets the inevitable
pull of gravity for 80 year old homes. You want to consider foundation,
siding, roof and other maintenance that's due.
Document the report with your pix and show the homework and that's it. I put on a cover letter calling attention to the fact that land, barns, outbuildings, wells, septics, utilities were not involved.
Fee? $300, 3.5 hours work including drive time.
PS the interior pix help; after the house is burned the IRS will find it difficult to dispute you.
Craig in Oregon