Fine Art and Collections
Appraisal and Brokerage Services
APPRAISAL AND APPRAISER REQUIREMENTS FOR DONATIONS:
A qualified appraiser is an individual who meets all the following requirements.
1. The individual either:
a. Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
b. Has met certain minimum education and experience requirements.
2. The individual regularly prepares appraisals for which he or she is paid.
3. The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued. The declaration must be part of the appraisal. However, if the appraisal was already completed without this declaration, the declaration can be made separately and associated with the appraisal.
4. The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during he 3-year period ending on the date of the appraisal.
In addition, the appraiser must complete Part III of Form 8283. See section 170(f)(11)(E), Notice 2006-96, and Regulations section 1.170A-13(c)(5) for details.
Per Notice 2006-96, the IRS defines “qualified appraisal” as a document that:
1. Is made, signed and dated by a qualified appraiser (defined below) in accordance with generally accepted appraisal standards
2. Meets the relevant requirements of Regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 (available at www.irs.gov/irb/2006-46_IRB/ar13.html)
3. Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property
4. Does not involve a prohibited appraisal fee
5. Includes certain information, such as a property description, terms of the sale agreement, appraiser identification information, date of valuation and valuation methods employed, among other requirements.