IRS Qualified Appraisal
We are not attorneys and are expressing our experienced
opinions within these answers.
If you are concerned, please contact an attorney for clarification.
An IRS Qualified Appraiser is a licensed appraiser subject to state laws and control of their actions. In addition, they have proven their ability, experience, and reliance to the IRS for creating, signing, and validating appraised value on properties based in approved, legal data requirements.
“For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor’s appraised FMV. . . .” (IRS Publication 561 – Determining the Value of Donated Property) Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property.
In addition, there must be reasonable valuation based on actual sales without weighing heavily on depressed or unusual markets. Notice it says, “Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered. . .”
Given the above, a Qualified Appraisal is usually based on current comparable sales at the resort and valued from about 60% to 90% of what you paid for the property unless there have been some drastic negative problems with the property.
Where do you find a Qualified Appraiser? A appraiser must find comparable sales recorded within the county recorder’s office in the county where the property is located. It is best to find one located there. Making a few calls to the county recorder’s office and local real estate brokers usually works.