Personal property appraisers play a crucial role in navigating what is often referred to as the “four D’s”: death, disaster, debt, and divorce.
Here are some of the common reasons to seek an qualified appraisal:
- Insurance – To insure your art collection. Also an appraisal is needed when when there is a loss or damage to your artwork to establish the value after an incident.
- Charitable Donations – To donate works of art valued over $5,000 to a non-profit and receive tax benefits.
- Estate Planning – To establish the value of an estate for tax purposes.
- Divorce – for an equitable distribution to divide property.
Insurance companies often require an appraisal for valuable works of art. Insurance appraisals can also be helpful in maintaining the records of your collection.
Qualified appraisals* for fine art are required by the IRS for any charitable donation of art to a non-profit in order to claim the tax benefits of your donation. An appraisal is performed for the purpose of accurate tax deductions.
If you are attempting to sell artwork from your collection or find out the current fair market value you may not need an appraisal. We can also advise and assist you with evaluating the best marketplace for resale or donation and how to deassession works of art with care and privacy.
Contact us and we will guide you through the process.
* Qualified appraiser (as defined by the IRS)A qualified appraiser is an individual with verifiable education and experience in valuing the type of property for which the appraisal is performed.
- The individual:
- Has earned an appraisal designation from a generally recognized professional appraiser organization, or
- Has met certain minimum education requirements and two or more years of experience. To meet the minimum education requirement you must have successfully completed professional or college-level coursework obtained from:
- A professional or college-level educational organization,
- A professional trade or appraiser organization that regularly offers educational programs in valuing the type of property, or
- An employer as part of an employee apprenticeship or education program similar to professional or college-level courses.
- The individual regularly prepares appraisals for which he or she is paid.
- The individual is not an excluded individual.
In addition, the appraiser must make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued. The appraiser must complete the Declaration of Appraiser section on Form 8283, Section B. More than one appraiser may appraise the property, provided that each complies with the requirements, including signing the qualified appraisal and the Declaration of Appraiser section on Form 8283, Section B.
