Discussion:Appraisal "Required" for gift?
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Discussion Forum Index --> Tax Questions --> Appraisal "Required" for gift?
| 1 February 2008 | |
| Client wants to gift some collectibles of a substantial value (over 100k apiece). So I don't have a liquid market to value them, though client is an experienced collector of this item herself.
I see where an appraisal is required of certain gifts to charity. Does not seem to be a requirement for non-charitable gifts other than it's valued at FMV (willing buyer/seller). Is it a best practice to have an appraisal done in case you are challanged (709 questioned), and, if so, does it need to be done by a certfied member of some appraisal group, or will an autioneer do? Any thoughts? | |
| 1 February 2008 | |
| You want to start with does it matter? If client rates to have a taxable estate you want good documentation. If stuff is worth that much it rates to be insured. See how up to date the rider is. | |
| 1 February 2008 | |
| I've only talked to her briefly on the phone, and when I mentioned appraisal she sort of balked so I wanted to be prepared to justify it (her son-in-law is a client of mine). She's a salt of the earth type person that lucked upon this area years and years ago, and now she's a leading collector of it. Anyway, I'll get an idea of her total "estate", as I think the items she wants to gift are only a small part of her collection and would eat into the unified credit pretty good if properly valued. I would not be totally surprised if she had no insurance rider, so a good time for an appraisal anyway. | |
RoyDaleOne (talk|edits) said: | 1 February 2008 |
| See: Regs. Sec. 20.2031-6. Valuation of household and personal effects.
Note an appraisal is required for any item over $3,000 in value. This is in order to protect the valuation used. Appraisal should be attached to 709. | |
| 1 February 2008 | |
| This sounds like getting an appraisal is a CYA issue all around. | |
| 11 February 2008 | |
| Hi, I have a related question pertaining to donating a collection of sports collectible figurines with approx. value of $1000. If I were to donate/gift them to a non-profit, (church, scouts, etc.), and receive a receipt for them, would this be considered as a Fed and/or State tax deduction, based upon their stated price guide value? If so, would notarization and/or original purchase receipts, (don't have), be required or is the current published guide, itself sufficient for valuation entry? Thank you for any and all assistance! John | |
Bottom Line (talk|edits) said: | 12 February 2008 |
| It might depend upon the auditor and their knowlege of price guides. The amount in the guide and the actual amount you can get vary widely. Who determines what condition the figurines are in? Of course you believe that all are in brand new condition partly because that gets you the best tax deduction. Now the problem, you no longer have the figurines. How do you prove what condition they were in? I'd advise you to get an independent appraisal. | |
