Many auctioneers including myself complete personal property appraisals for IRS charitable contributions. New rules were just adopted July 30, 2018 and here we analyze a few of the highlights.
For reference, here is our previous article on IRS appraisals from 2013: https://mikebrandlyauctioneer.wordpress.com/2013/05/01/auctioneers-uspap-compliance-for-appraisals/
A comprehensive link with lots more detail about these new rules (2018) is here: https://www.federalregister.gov/documents/2018/07/30/2018-15734/substantiation-and-reporting-requirements-for-cash-and-noncash-charitable-contribution-deductions
Currently for any contributions over $500 an IRS Form 8283 “Noncash Charitable Contributions,” is used. For contributions in excess of $5,000 the donor must also (generally) have the assistance of a qualified appraiser.
We address here two common (somewhat longstanding) misconceptions about IRS appraisals/appraisers. Specifically, what is a “qualified appraisal?” and who can serve as a “qualified appraiser?”
- Qualified appraisals must be consistent with the substance and principles of the Uniform Standards of Professional Appraisal Practice (USPAP.) However, such does not require strict compliance with USPAP.
- Qualified appraisers are individuals with verifiable education and experience in valuing the type of property for which the appraisal is performed. However, the Treasury Department and the IRS do not require nor prefer the designation of any particular appraiser organization.
Auctioneers across the United States generally hold one of two appraisal designations — CAGA and/or GPPA. CAGA is the Certified Appraisers Guild of America designation and GPPA is the National Auctioneers Association‘s Graduate Personal Property Appraiser designation.
There is no question that more education in appraisal principles and practices helps protect the public and promotes professional services. USPAP is the generally recognized ethical and performance standards for the appraisal profession in the United States.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, an Instructor at the National Auctioneers Association’s Designation Academy and America’s Auction Academy. He is faculty at the Certified Auctioneers Institute held at Indiana University and is approved by the The Supreme Court of Ohio for attorney education.