Appraiser Services Donation Charity and Gift Appraisals 

The donation of real estate can provide substantial tax benefits

The appraisal determines the fair market value of the property, which is essential for various purposes, including tax deductions. Here are key considerations related to the real estate appraisal for donation:

 

Choose a Qualified Appraiser: Select a certified and qualified real estate appraiser. The appraiser should be experienced in valuing properties similar to the one being donated.

 

Fair Market Value Assessment: The appraisal should determine the fair market value of the property. Fair market value is the price that a willing buyer would pay and a willing seller would accept in an open market.

 

Appraisal Process: The appraiser will conduct a thorough examination of the property, considering factors such as location, size, condition, comparable sales, and any unique features.

 

Compliance with Standards: Ensure that the appraisal complies with applicable industry standards and guidelines. Professional appraisers adhere to standards set by organizations such as the Appraisal Foundation.

 

Written Appraisal Report: Obtain a comprehensive written appraisal report that includes details of the property, the valuation methodology used, comparable sales data, and the final fair market value conclusion.

 

Qualified Charitable Organization: Confirm that the charitable organization accepting the donation requires a qualified appraisal. Some organizations may have specific criteria for the type of appraisal they accept.

https://www.clevelandhabitat.org/how-to-help/donate-real-estate.html

 

Timing of the Appraisal: The appraisal should be completed close to the time of the donation. The IRS typically requires the appraisal to be no earlier than 60 days before the donation date.

 

IRS Form 8283: For donations exceeding $5,000, the donor must complete and attach IRS Form 8283 to their tax return. This form includes details of the donation, including the appraised value. https://www.irs.gov/charities-non-profits/charitable-contributions

 

Donor's Responsibility: The donor is responsible for the cost of the appraisal. However, this expense is often considered a part of the overall charitable contribution.

 

IRS Guidelines for Appraisals: Familiarize yourself with the IRS guidelines related to charitable contributions and appraisals. The IRS provides specific requirements for documenting and substantiating charitable contributions.

 

Consult with Tax Professionals: Consult with tax professionals, such as accountants or tax advisors, to ensure that the donation is structured appropriately for maximum tax benefits.

 

Donation Restrictions: Discuss any restrictions or conditions associated with the donation with the charitable organization. Some donors may have specific wishes regarding how the property is used.

 

Keep Records: Maintain thorough records of the appraisal, the donation process, and any relevant correspondence. These records are essential for tax reporting and documentation.

 

Donations Charity Gift Real Estate Valuation