Land Appraisal for Charitable Donation

[Ricky LaFleur]

these types of appraisals that are Yellow Book compliant

For what it's worth, this wouldn't fall under Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book).

 

[Zoe]

 

[Zoe]

You will sleep well tonight if you punt. Otherwise charge big money to your client. It will take you a long time. I would be in $5,000 range personally. See what client says?

 

[Zoe]

I would also want any and all out of pocket expenses paid on top of fee?

 

[Joe Beaster]

For what it's worth, this wouldn't fall under Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book).

You are correct, but for an IRS donation, it has to follow Yellow Book principles, not necessarily standards, but guidelines. At least that is what the IRS had indicated.

 

[Ricky LaFleur]

You are correct, but for an IRS donation, it has to follow Yellow Book principles, not necessarily standards, but guidelines. At least that is what the IRS had indicated.

All communication regarding IRS protocol can be found in their publications. I would suggest following their publications for guidance such as found here: https://www.irs.gov/publications/p561

Nowhere within the publication is the yellow book or proper name mentioned nor the principles therein. If you're acting as an appraiser, however, The Uniform Standard Principles of Appraisal Practice will certainly apply. Not to be heavy-handed, but there's a lot of misconception regarding tax appraisal out here in the forum.

 

[Fernando]

Probably the closest thing to a 'unbuildable' lot is a conservation easement, maybe. Gates and Buffet can set up foundations and minimize their income taxes, but try giving away something without good comparables and the IRS's ears perk up.

FYI: https://www.irs.gov/compliance/criminal-investigation/appraiser-in-billion-dollar-conservation-easement-fraud-scheme-pleads-guilty#:~:text=A North Carolina land appraiser pleaded guilty today,more than $1.3 billion in fraudulent tax deductions.

I once took on 20-acres of wetland that the owner wanted to donate. I spent 2-months researching land sales and eventually told the owner I couldn't do the assignment because there were no credible comparables.

There was a small section of land next to this house in my neighborhood. It was too small to build anything and is worthless to almost all.
However the owner was able to buy the property for $50,000 from the city.
It was a great deal now that subject has additional driveway parking. Value of that extra lot added more than $50,000 to total market value.

 

[OSU Beavers]

Read the IRS appraisal requirements. An in depth reporting of the prior subject and comp sales are called for.