More discussion about IRS tax appraisals

[KHS445]

Thanks! Since this is a retrospective appraisal report, I can use future sales comps after effective date, right? How far future can be? If the effective date is 07/01, can I use the late Sept comp? That comp is on the same street, same model, similar condition with about 5% lower price thought.

I would only consider using a comparable sale that closed after the effective date, if I had proof that the contract date preceded the effective date. As others have said I might consider using it as an afterthought comparable, as support for any time adjustments and/or market stability.

 

[Mark K]

If it is an appraisal that is not intended for use in a lending tranaction, you can use sales that closed both before and after the effective date of the appraisal. The requirement that comparable sales be closed as of the date of the appraisal is a lending requirement. As for what time frame is appropriate, it depends on how the market has changed. A sale that closed one day after the effective date may be a good comparable. A sale that closed 2 years after may not be. Market to market adjustments may be needed... just as they sometimes are when the sale closed before the effective date.

I occasionally work for an attorney/CPA that does a lot of estate and gifting work. The above is essentially what he told me.

If the market hasn't changed significantly there's no reason to not use a good comp that closed after the effective date, within reason.

Also, forget about the F/F guidelines that so many think apply to all appraisal assignments. Use common sense, something that F/F isn't fond of.

 

[Terrel L. Shields]

significantly there's no reason to not use a good comp that closed after the effective date,

I've had CPAs say that using post-date sales is 'illegal' and no, they are not, but when I do appraisals for some CPAs rather than argue, I don't use post-DOD sales.