When making non-cash charitable contributions of significant value, donors must follow specific requirements from the Internal Revenue Service (IRS) to secure a deduction. A key element in this process is the qualified appraisal report, which serves as the official documentation of the fair market value of the donated property. This report ensures compliance with tax regulations and protects the donor in the event of an IRS review. 

The following summary explains the essential criteria for a qualified appraisal report, the qualifications appraisers must meet, and special considerations for contributions of art. 

A qualified appraisal report is recommended for non-cash charitable contributions of more than $5,000 and is required for donations valued above $500,000. The report must be completed by a qualified appraiser and must meet the following criteria: 

• The report must be made, signed, and dated by a qualified appraiser and must align with the substance and principles of the Uniform Standards of Professional Appraisal Practice. 

• It must comply with the requirements of Regulations section 1.170A-17(a). 

• The report must be signed by the qualified appraiser and dated no earlier than 60 days before the date of the contribution and no later than the due date, including extensions, of the return on which the deduction is first claimed. 

A qualified appraiser must meet certain standards: 

• The appraiser must have earned an appraisal designation from a recognized professional appraiser organization for the type of property being valued, or meet minimum education requirements and have two or more years of experience in valuing that type of property. 

• The appraiser must regularly prepare paid appraisals. 

• The appraiser must not be an excluded individual, meaning they must have no affiliation with the donor or the property. 

• The appraiser must make a declaration that their professional background and experience qualify them to appraise the specific type of property. 

• The appraiser must complete the Declaration of Appraiser section on Form 8283
  section B. 

For contributions of art, an appraisal report is required only when the value exceeds $20,000. If the art donation is appraised at $50,000 or more, the donor may request a Statement of Value from the IRS before filing the tax return. The completed appraisal report, Form 8283, and the location of the nearest IRS territory office can be mailed to the IRS for verification. 

*See Disclosures