Charitable Gift Appraisals
In 2006 Congress passed the Pension Protection Act (H.R. 4). In it, there are appraisal requirements which state, in part, that the appraisal of a property that is being gifted for charitable purposes must be completed by a "qualified appraiser."
A qualified appraiser is defined in the instructions for IRS Form 8283 as "an individual who meets all the following requirements.
- 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.
- The individual regularly prepares appraisals for which he or she is paid.
- 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.
- The individual has not been prohibited from practicing before the IRS under section 330(c) of tilte 31 of the Untied States Code at any time during the 3-year period ending on the date of the appraisal.
(emphahsis is mine)
As a designated SRA Appraiser and a Member of the Appraisal Institute, Dana L. Grover, SRA, meets the qualifications the IRS requires for appraisals of residential properties that are donated as Noncash Charitable Contributions. You can be assured that the appraisal you obtain from Dana L. Grover Associates meets those requirements. Not all appraisers do meet them, so when you retain someone to do an appraisal for charitable gift purposes, make sure that they are qualified to do so.