Tax / Financial Planning
Tax Planning and the Appraiser
Like many other disciplines, Real Estate Appraisers have many different specialties from which to pursue. Estate planners should be sure that the appraiser they choose is familiar with all of the aspects of tax appraisal preparation, including the differences in definitions of value.
Typical appraisers are familiar with "Market Value." However, the IRS has developed its own definitions such as "Fair Market Value", "Intrinsic Value", "Use Value", and "Investment Value."
Appraisals involving tax planning are a special discipline - make sure the appraiser you pick is familiar with the minutia involved to avoid costly and lengthy delays. Also, if the tax is later challenged in a court of law, be sure the appraiser is capable of competently testifying as an expert witness.
Avoiding Penalties
Penalties for improper valuations can be extraordinarily expensive if the valuations do not adhere to the IRS Real Property Valuation Guidelines. Appraisal reports must be well documented and properly reported, particularly if partial interests are involved. Proper documentation and procedures can mean the difference in an accepted appraisal and one that will be disputed.
We've spent hundreds of hours of continuing education with various IRS Appraisers
IRS Appraisers often participate in continuing education classes required for State Certified Appraisers. They demand credibility from the appraisals that are submitted, and will not hesitate to challenge those that are not. Make sure that the appraiser you choose minimizes the chance of future disputes but, if disputes are unavoidable, can defend his report.
Contact Us to discuss how we can help you with your financial planning and tax preparation.
Links to Various IRS Appraisal Forms & Guidelines
Determining Value of Donated Property
Casualties, Disasters, and Thefts
Real Property Valuation Guidelines
Capital Gains on Primary Residence
Form 8283 - Noncash Charitable Contributions