I guess my question is why would you want to do a desktop appraisal when the consequences of failure are so high? You will find no instructions for same. You do not send the appraisal to the IRS if you are the person filling out the forms. So you can write it on a napkin if your client is willing to pay good money for such. Of course, if the IRS questions it, then you might wish you had done a full blown appraisal and done it with some care. IF a gifting you get to swear out a form 8283 and acknowledge you are aware of the potential penalty for a fail.
Appraisal Requirements The appraisal must be prepared by a qualified appraiser (defined later) in accordance with the substance and principles of the Uniform Standards of Professional Appraisal Practice, as developed by the Appraisal Standards Board of the Appraisal Foundation. It also must meet the relevant requirements of Regulations section 1.170A-17(a) and (b). The appraisal must be signed and dated by a qualified appraiser not earlier than 60 days before the date you contribute the property. You must receive the appraisal before the due date (including extensions) of the return on which you first claim a deduction for the property. For a deduction you first claim on an amended return, you must obtain the appraisal before the date you file the amended return. See Regulations section 1.170A-17(a)(4), (a)(8). A separate qualified appraisal and a separate Form 8283 are required for each item of property except for an item that is part of a group of similar items. Only one appraisal is required for a group of similar items contributed in the same tax year if it includes all the required information for each item. The appraiser may group similar items with a collective value appraised at $100 or less.
Part IV, Declaration of Appraiser If you are required to get an appraisal, you must get it from a qualified appraiser. A qualified appraiser is an individual who meets all the following requirements as of the date the individual completes and signs the appraisal. 1. The individual either: a. Has earned a recognized appraiser designation from a generally recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or b. Has met certain minimum education requirements and has two or more years of experience in valuing the type of property being appraised. To meet the minimum education requirements, the individual must have successfully completed professional or college-level coursework in valuing the type of property and the education must be from: i. A professional or college-level educational organization, ii. A generally recognized professional trade or appraiser organization that regularly offers educational programs, or iii. An employer as part of an employee apprenticeship or education program similar to professional or college-level courses. 2. The individual regularly prepares appraisals for which he or she is paid. 3. The appraiser makes a declaration in the appraisal that, because of his or her experience and education, he or she is qualified to make appraisals of the type of property being valued. 4. The appraiser specifies in the appraisal the appraiser’s education and experience in appraising the type of property being valued. In addition, the appraiser must complete Part IV of Form 8283. See section 170(f)(11)(E) and Regulations section 1.170A-16(d)(4) for details.
New basis-consistency requirements make defensible valuations even more important.
www.journalofaccountancy.com
Information about Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, including recent updates, related forms and instructions on how to file.
www.irs.gov
community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.
