Appraisal for tax purposes-IRS

[Karl]

I was a Lead Review Appraiser at IRS for 5 years up to last year. I am in contact with IRS appraisers weekly.

On this issue, I think you may want to blow off someone else, Marcia.

WOW!! with that attitude I can understand why your not still there.

Think you may want to check intio the details of the NEW Fannie Mae Form cause per the designer of the Form I am ALMOST positive it is NOT to be used for the IRS SOW.

You know even those that have worked for the Government including the IRS have been wrong.

 

[Don Clark]

WOW!! with that attitude I can understand why your not still there.

Think you may want to check intio the details of the NEW Fannie Mae Form cause per the designer of the Form I am ALMOST positive it is NOT to be used for the IRS SOW.

You know even those that have worked for the Government including the IRS have been wrong.

Karl,

Just a thought. Maybe the poster wasn't talking about using the 2005 Fannie Mae forms? The 6/93 1004 could be used.

 

[Pat Butler]

Any time I do an appraisal that might have some unknown technical requirements I have a detailed engagement letter. I prefer to have the client get the engagement letter reviewed by their attorney and/or accountant. There are too many hassles dealing with the IRS, and you want to have the responsibility for any special requirements on the shoulders of other professionals who have more expertise in that area.

My brother is a CPA and we've had many conversations about this sort of thing. There's no such thing as just a generic appraisal that will always satisfy IRS guidelines. A competant accountant will no the specific needs for their client and that's the best place to get guidance from.

On the other hand, the IRS has been known to not be too picky in a lot of instances and will sometimes allow all sorts of more informal valuation techniques to be used.

 

[Midwest Guy]

Perhaps, we want to clarify and state the classic FNMA form, not the 2005 series.

You must ask her what is the particular issue or reason for the appraisal. At first blush, it sounds to me that the IRS is considering whether there is "inurement" due to her living in a house owned by her non-profit. (benefiting from the non-profit status)

Secondly, contrary to prior posts, you can and should use a simple FNMA type report for a non-complex residential property. The IRS likes it simple and comprehensive.

Next, make sure you use the IRS definition of Market Value, which should be included in the prior hyperlink. If not, Google it.

Lastly, an 8283 form is only good in relation to a non-cash charitable contribution, such as a donation of a conservation easement. It has to be signed by the donor, donee, and the appraiser. I don't think this is what you have. If you use it and it is not necessary, you may do more harm than good.

In conclusion, when doing an appraisal for the IRS, you should always have a letter of engagement that you prepare AFTER you have had a thorough conversation with the taxpayers tax-advisor. Make sure you cover yourself for post appraisal interviews via phone and in-person at the IRS office.

 

[Midwest Guy]

My favorite is the instructions on completing the approaches to value.

Thank you Jim, This is a great publication and very detailed.

 

[Pat Butler]

Please note that that IRS pub is specifically for DONATED PROPERTY. Have their professional advisor provide you with their specific requirements.

 

[Louis Pompeo]

I didn't recommend using the 1004 form.

A previous poster advised that the IRS would not allow a 1004 form.

I'm here to say that it is just fine to use a 1004 or any other Summary Appraisal Report FORM.

There is no requirement to do narratives for the IRS. It is also just fine and dandy to modify a form report for IRS purposes (such as modifying the FNMA Def of MV to the IRS Def of MV)

WOW!! with that attitude I can understand why your not still there.

Think you may want to check intio the details of the NEW Fannie Mae Form cause per the designer of the Form I am ALMOST positive it is NOT to be used for the IRS SOW.

You know even those that have worked for the Government including the IRS have been wrong.

Statements like that from Karl make me wonder why some people come here.

A person started this thread asking for help on an IRS assignment.....a couple of people responded and gave some misinformation, which I clarified.

I was an IRS Appraiser for 5 years. I know the system inside and out. When I share what I know I get attacked and belittled.

C'mon guys......loosen up already! I know what I'm talking about.

And for Karl.....I did such a good job at IRS that another Fed Agency solicited me and gave me an offer I couldn't refuse.

How much work have YOU done for the IRS Karl?

 

[Karl]

You still didn't specifi that your talking the OLD 1004 NOT the New. & this is why you are probablly a very good Government employee cause you never give ALL the information that one needs. \

I use the OLD 1004 for All 42 IRS assignments that I have done in past 4 years & have never had a problem. I believe had I used the NEW 1004 for an IRS assignment I'd be wrong.

Mr Murphy: Your response to a poster is what set me off. So YOU started it!!! Please see below how YOU responded!!! Then I'm sure you'kll want to make the typical goverment type apology. .

I was a Lead Review Appraiser at IRS for 5 years up to last year. I am in contact with IRS appraisers weekly.

On this issue, I think you may want to blow off someone else, Marcia.

 

[Louis Pompeo]

Karl:

Please tell me.....what kind of work have you done for the IRS?

For which divisions?

What were the issues?

Did you do form reports or narratives?

were any of them ever contested, and if so, by whom?

When does the IRS require compliance with USPAP?

What special or unique problems have you experienced doing IRS work?

 

[Carnivore]

Secondly, contrary to prior posts, you can and should use a simple FNMA type report for a non-complex residential property. The IRS likes it simple and comprehensive.

Karl,

I think this is where you got confused. Pat did not say which specific FNMA form to use. Pat did say the appraiser "should use a FNMA form". I would not interpret the word "should" as someone telling someone they should' use a specific form.

Personally, I am with you. Non-lender work I use narrative or AI GP or alamode GP. Much more professional looking and it prevents the client from using your report for some other Uintended use.

The other benefit is that there simply is no confusion on what definition of value applies!