IRS Charitable Contribution Appraisals
Our President & CEO, Jessica I. Marschall, CPA, ISA AM, is a practicing CPA of 19 years who also owns the tax consultation practice Marschall Accounting Services, LLC. She brings her expertise in reading, studying, and applying the intricacies of the Internal Revenue Code with exactness to Probity’s appraisal practice.
Our COO, Mayur Dankhara, ISA AM has a MS in Construction Management and has practiced as a personal property appraiser for five years. His work includes appraisals of property for both individual and corporate donors including furnishings, antiques, fixtures, and other household content.
The IRS provides a strict definition of Fair Market Value and how this value is concluded. Probity produces appraisals for the three following IRS value substantiation purposes:
- Charitable Contributions for donations greater than $5,000
- Estate valuations for estate tax purposes
- Gift valuations for gift tax purposes
Producing an IRS Qualified Appraisal by an IRS Qualified Appraiser is approached as developing a comprehensive research assignment. Each argument for valuation will be detailed in our market analysis, analyzing comparable sales data, and final conclusion of value. Our appraisal reports ensure detailed and comprehensive arguments are made when we conclude values.
Our appraisal reports include a detailed description of the property being donated following the international Object ID standard. We provide a comprehensive review of the general economic market at the time as well as an in-depth review of the market for the specific property being appraised. We then detail our comparable sales and offers of sale researched and rank these properties based on their shared characteristics of value and elements of quality to the appraised property. Our final value conclusion details adjustments made from these comparable properties to arrive at our final concluded value.
We ensure adequate comparable sales and offers of sale are analyzed and include the full report on those sales within our appraisal report.
Donating pieces of an estate to a nonprofit organization is often more financially beneficial than selling. This can include furnishings, fine, decorative art, and other personal property. Nonprofit’s benefit from the donations to support their missions. The IRS requires a Qualified Appraisal to be completed by a Qualified Appraiser to substantiate the Fair Market Value of the donation. Our team of appraisers ensures sound valuation methodology is used when producing these appraisals. Our appraisal reports include all comparable sales data researched and analyzed and how we specifically use this market data to conclude our opinion of value.
Please click here to read a case study by our CEO comparing estate property donation versus selling: