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If you plan on
claiming a value of more than $5,000 for your donated vehicle, you must
have a “qualified appraisal” completed before donating.
You
will also need the ALAA’s signature on the back of IRS form 8283.
Because
a “Qualified Appraisal” needs to include various statements not
found in typical appraisals, we are including here a list of the
required statements.
We
provide this information only as a service to our donors and we
encourage you to consult your tax advisor on the preparation of this
appraisal.
Required
statements:
- A description of the donated item (including a
description of physical condition in the case of tangible personal
property).
- The date of the appraisal
- The date of the expected date of gift
- The fair market value of the donated item on
the date or expected date of gift.
- The basis for determining the fair market value
- A description of any agreement or understanding
affecting the use of the donated item by the donee organization.
- A statement that the appraisal was prepared for
federal income tax purposes.
- A description of the fee arrangement between
the donor and the appraiser (can’t be a percentage of the
appraised value).
- The appraiser’s name, address and tax ID
number
- A listing of the appraiser’s education,
background, training and experience, including membership (if any)
in professional appraisal associations.
Some
other notes regarding “Qualified Appraisals”
1.
To be
a qualified appraisal, an appraisal must be prepared by a “qualified
appraiser”.
2. To
be “qualified”, the appraiser cannot be the donor, the donee, an
employee of either, or a party to the transaction in which the donor
acquired the donated item.
3. To
be “qualified”, an appraisal must be obtained no earlier than
60
days before the date of gift and no later than the
day before the
due date (including extensions) of the income tax return on which
the appraised gift is first reported.
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