Estate & Gift Tax

Estate & Gift Tax

Our firm has extensive experience producing appraisal reports for other tax purposes, be it for estate tax, gift tax or establishing cost basis. We are adept at coordinating the appraisal of large estates that may require multiple appraisal experts.

An appraisal report for tax purposes includes item descriptions, photographs, documentation of the current condition discussion of the market for the particular properties and Fair Market Values of the subject property as of the effective date of value. These reports are prepared with the knowledge that they will be submitted to the IRS, and they therefore conform to IRS guidelines and requirements.

Appraisals for tax purposes require Fair Market Value. Although the U.S. Treasury has a number of definitions, the intent and results are basically the same. For Estate Tax: 26 CFR §20.2031-1(b).

Appraisal reports for other tax purposes also must meet IRS requirements, including Gift Tax and Cost Basis.

IRS Guidelines for Gift Tax:

The IRS has a very specific list of requirements for a “qualified appraisal” and a “qualified appraiser.” A qualified appraiser must have verifiable education and experience in valuing the type of property for which the appraisal is performed by completing college-level coursework and having two or more years of experience in valuing the type of property at issue, or have earned a recognized appraiser designation for the type of property at issue. A qualified appraiser also cannot be the donor, the donee, a party to the transaction in which the donor acquired the property, employed by or related to any of the foregoing persons, or married to any person who is related to any of the foregoing persons. For more information, please see IRS Publication 561, page 4 of IRS Notice 2006-96 (PDF), “Guidance Regarding Appraisal Requirements for Noncash Charitable Contributions” and Revenue Bulletin 2018-33.