Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
The Internal Revenue Service (IRS) details their expectations for an appraisal of the fair market value (FMV) of donated property, including donated real property, in Publication 561. Appraisers must review the definitions and concerns detailed in the Publication or face the possibility of being significantly fined. Most of the FMV “problems” that the IRS lists in the Publication related to donated property are, for most appraisers, common sense in nature. The IRS discusses things like; the date of the contribution, unusual market conditions, sales price, the selection of comparable sales, future events, arm’s-length offers, the sales approach, the capitalization of income, replacement cost, business interests, predicting future earnings, property description, undivided interests and amenities.