We are frequently asked "What is a Designated Appraiser or a Qualified Appraiser?" To briefly explain the answers to this question, we first outline in this article one of the six main appraisal guilds that provide higher education to the professional appraiser in all appraisal disciplines. At the end will be the IRS definition of a "Qualified Appraiser or Appraisal" according to IRS Circular 230.
AMERICAN SOCIETY OF APPRAISERS (ASA)
ASA is internationally known and a highly respected association
* The American Society of Appraisers was one of the eight original founding associations of The Appraisal Foundation. The American Society of Appraisers (the "Society") is a multi-discipline non-profit international organization of professional appraisers (valuers). The mission of the Society is to foster the public trust of our members and the appraisal profession through compliance with the highest levels of ethical and professional standards.
* ASA is recognized by the Internal Revenue Service as well as other governmental agencies, financial institutions and the courts.
* ASA offers the necessary resources to develop the expertise needed to appraise diverse types of properties and handle the most difficult appraisal problems.
* ASA offers an on-line directory to locate the appropriate designated professional for your particular assignment, both nationally and internationally.
* Is the only professional valuation organization that accredits members in every appraisal discipline. ASA works to grow the appraisal profession and fosters professional excellence in its membership through education, accreditation, publication and other services
Appraisal Disciplines that have higher education programs within the ASA Membership is:
* Appraisal Review and Management
* Business Valuation
* Gems and Jewelry
* Machinery and Technical Specialties (FF&E)
* Personal Property
* Real Property
Estate & Tax Planners
For Estate and Tax Planners, a Qualified Appraiser can provide Qualified Appraisal reports capable for IRS submission
Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. You must also complete Form 8283, Section B, and attach it to your tax return.
According to IRS regulations, a qualified appraisal is an appraisal document that:
* Is made, signed, and dated by a qualified appraiser in accordance with generally accepted appraisal standards,
* Meets the relevant requirements of Regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 (available at www.irs.gov/irb/2006-46_IRB/ar13.html ),
* Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property,
* Does not involve a prohibited appraisal fee, and
* Includes specific information
According to IRS regulations, a qualified appraiser is an individual who meets all the following requirements:
The individual either:
1. Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised,
1. Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised in the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.
2. The individual regularly prepares appraisals for which he or she is paid.
3. The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued.
4. The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.
5. The individual is not an excluded individual.
Other Appraisal Guilds are:
APPRAISAL INSTITUTE (AI)
AMERICAN SOCIETY OF FARM MANAGERS & RURAL APPRAISERS -ASFMRA
INTERNATIONAL RIGHT OF WAY ASSOCIATION
NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS
RICS – ROYAL INSTITUTION OF CHARTERED SURVEYORS
For more information go to: www.sandiegoappraisers.org.