IRS form 8283 and appraisal for purchase

[Kcmurray]

I did an appraisal last year for a purchase of a property. Now the seller is asking me to sign an IRS form 8283 as he is donating the proceeds? I was hired by the purchaser's lender to do the appraisal for the purchase. I don't feel comfortable signing this form as the appraisal was not for the donation. Any thoughts?

 

[TerryRohrer]

Not a chance I would fall in that trap!

 

[Dublin ohio]

No. No. A hundred times no.

 

[shrubberyvaluation]

I did an appraisal last year for a purchase of a property. Now the seller is asking me to sign an IRS form 8283 as he is donating the proceeds? I was hired by the purchaser's lender to do the appraisal for the purchase. I don't feel comfortable signing this form as the appraisal was not for the donation. Any thoughts?

Seems like you already have your thought down and follow your gut feeling. Why would you want to sign something that can make you a party to some IRS discrepency for no $$$.

 

[Terrel L. Shields]

Tell them, first off that appraisal does not comply with the IRS. They require the IRS defintion of market value and you also have a stated required verbiage to add to the appraisal. This is a separate assignment. Tell them the fee. If they are donating it, then it is good for a huge reduction in their taxes. Don't be bashful.
This is an absolute requirement of the IRS-

"The purpose of the appraisal is to estimate the fair market value as defined by the IRS §1.170S-1(c)(2) of the subject property, as defined in this report, on behalf of the referenced client as the intended user of this report. The intended use of the appraisal is to assist the client, as the intended user of this report, in evaluating the subject property."​

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This appraisal was prepared for income tax purposes.​

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I understand that my appraisal will be used in connection with a return or claim for refund. I also understand that if a substantial or gross valuation misstatement of the value of the property claimed on the return or claim for refund results from my appraisal, I may be subject to a penalty under section 6695A of the Internal Revenue Code, as well as other applicable penalties. I affirm that I have not been barred from presenting evidence or testimony before the Department of the Treasury or the Internal Revenue Service pursuant to 31 U. S. C. section 330(c).​

 

[Tiffany Gibbons]

I did an appraisal last year for a purchase of a property. Now the seller is asking me to sign an IRS form 8283 as he is donating the proceeds? I was hired by the purchaser's lender to do the appraisal for the purchase. I don't feel comfortable signing this form as the appraisal was not for the donation. Any thoughts?

Nope.

 

[sputnam]

Definitely... No.

 

[glenn walker]

I did an appraisal last year for a purchase of a property. Now the seller is asking me to sign an IRS form 8283 as he is donating the proceeds? I was hired by the purchaser's lender to do the appraisal for the purchase. I don't feel comfortable signing this form as the appraisal was not for the donation. Any thoughts?

No they need a separate appraisal done for a gift or donations. I do quite a few of theses and they are not done for lender assignment conditions nor are they done on Fannie Mae UAD Forms. Just say no period as IRS will hold you responsible if anything goes south. Also all Gift and Donation appraisals are manually audited and reviewed by a IRS agent. NO-NO-NO -Repeat ten times

 

[redfish]

I would offer to complete a new assignment for this new intended use after explaining to your new client what intended use is and what it means for an appraisal report and appraiser. I have found sending FAQs or AOs from USPAP to bolster my explanation helps.

 

[Elliott]

There is something in our behavioral makeup that makes us difficult to say 'no.' But in the appraisal biz it is the best word in the English dictionary. I think of all the times I've used it and so glad about the problems I've avoided. When you get involved with legal issues you can live with them for years, and they are not like doing regular finance work.