Internal Revenue Service (IRS) Compliant Appraisals

Internal Revenue Service (IRS) Compliant Appraisals

Required when you are donating a conservation easement AND you want to claim a tax deduction (and who doesn’t!). An IRS appraisal is compatible with USPAP, aka Uniform Standards of Professional Appraisal Practice.

You’ll file IRS Form No. 8283 with a copy of the appraisal to claim the deduction. This IRS form MUST be signed by the appraiser and by the Donee. The date of valuation in the appraisal can be no more than 60 days before you convey the conservation easement.

Link to IRS Form 8283

The IRS imposes severe penalties for overvalued appraisals. Both the donor and the appraiser are subject to these penalties. Below is a link to more information on the penalties for an overvalued property used in an IRS conservation easement appraisal.

Link to IRS penalties regarding Conservation Easement Appraisals

The Appraiser will analyze the original purchase when your family members first bought the property. So, research of prior ownership is a very important step in the appraisal process.

Family Owned Contiguous Parcel Rule – All real estate in the area owned by you and your family must be considered in the appraisal. Based on this fact, your family includes your spouse, parents and grandparents, children and grandchildren, and your brothers and sisters. Also,corporations, partnerships, and trusts you control. Below is a link to learn more about what is specifically is required to determine what the IRS deems as a family owned contiguous parcel.

Link to IRS Family Owned Contiguous Parcel information

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Affinity Valuation Group LLC
Located in: Ann Arbor, Howell, Jackson & Tecumseh, Michigan

Website: affinityvaluation.net  •  1310 S Main St, Suite 7  •  Ann Arbor, Michigan  48104
Phone: (800) 305-8832  •  Fax: (800) 354-9868  •  E-mail: info@affinityvaluation.com

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