IRS Qualified Reports
Are you considering donating real estate?
Considering donating real estate and not sure where to start?
First and foremost, know that you’ll need a qualified appraisal, performed by a qualified appraiser. Whether its between family members or to a charitable organization, you will be in need of an “IRS Qualifed” appraisal. Our certified appraisers produce reliable IRS Qualified Appraisal Reports for itemizing tax deductions for the donation of residential real estate property.
What is a “Qualified Appraisal”?
A qualified appraisal is an appraisal that meets the requirements set forth by the Internal Revenue Service (IRS) and is conducted by a qualified appraiser. Qualified appraisals are made no earlier than 60 days before a piece of property is donated.
Determining the value of a piece of property is especially important when making a donation, since an improper valuation can result in either a deduction lower than what the property could bring or a red flag by the IRS for a valuation that seems too high. To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution
Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.
A qualified appraisal document is used to notify the IRS that the value of a piece of property is in excess of $5,000, and is attached to Form 8283 and filed with a tax return if a deduction is being requested. Form 8283 is used to report information about non-cash charitable contributions and is required if a taxpayer’s deduction for all non-cash gifts exceeds $500. Individuals, partnerships, and corporations can all file Form 8283.
About Form 8283, Noncash Charitable Contributions | Internal Revenue Service (irs.gov)