Reliable and Defensible Appraisals for Estate and Trust Administration
I.R.S. Compliant Appraisals for
• Estate tax
• Estate planning
See also Charitable Contribution for Donation or Estate & Probate for properties currently in Probate
Appraisals for the purpose of Trust Administration, or other potential IRS taxation use, the must meet the IRS engineering guidelines and the appraiser must be qualified under IRS guidelines to perform the appraisal.
For Real Property, at a minimum, this requires the appraisal be completed by an appraiser licensed in for the property type and in the state which the property is located. Additionally, the analysis must meet the IRS criteria, and the appraisal report must meet IRS criteria.
If the appraiser prepares an incorrect appraisal they may have to pay the penalty under section 6695a. A tax advisor should advise if the taxpayer may also be subject to penalties if the valuation is found to be incorrect. We have received some appraisal industry articles indicating the IRS has audited returns and their appraisals for incorrectness in valuation and amount of Fair Market Value of contributions/filings within recent years.
When Pointer Appraisal Services prepares and appraisal for IRS use, the appraisal analysis is designed to meet IRS engineering standards and the appraisal report is designed to meet IRS reporting standards and instructions for form 8283:and 561
An appraisal prepared for IRS use consists of many of the same elements which an appraisal utilized for other important decisions requires. The IRS has developed guidelines for the scope of work required for compliant valuation conclusions in their engineering requirements and other sections.
Additionally, the IRS regulations are consistently being updated, therefore, depending on the effective date of the valuation the requirements may fall under differing regulations in regard to scope of work and qualified appraisers.
We have on staff both Designated Appraisers by recognized appraisal organizations and State Certified General and Residential Appraisers which comply with both the pre and post 08/17/2006 regulations regarding qualified appraiser(s).
In some instances a compliant appraisal can be provided to comply with both IRS regulations and other intended users such as banks, trust administrators, courts of law, and many lenders.
We look forward to discussing your particular real property valuation problem and providing professional advice and consulting. Please utilize the website link to request a consultation or call our offices.
This web page does not provide legal or tax advice, but it does provided summary information extracted from IRS publications. The reader is responsible for obtaining legal and tax advice from his or her own professional advisors.
It is important that users of appraisal services for the purpose of IRS reporting become familiar with the latest changes
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