The Internal Revenue Service now requires the need for a “qualified appraisal” and for using a “qualified appraiser” in its regulations relating to the decedent’s gross estate under section 2053(a)(3) of the Internal Revenue Code. Per IRS’ Estate Tax Rules, the “qualified appraisal” (value) of a claim must be developed by a “qualified appraiser.”
These definitions of “qualified appraisal” and “qualified appraiser” in regard to Estate Tax Rules have been married to the definition the IRS provided for noncash charitable contributions, which the agency issued as Notice 2006-96.
Per Notice 2006-96, a “qualified appraisal” is a document that:
• Is made, signed dated by a qualified appraiser in accordance with generally accepted appraisal standards
• Meets Regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 requirements (www.irs.gov/irb/2006-46_IRB/ar13.html)
• Is not over 60 days before the date of contribution of the property.
The IRS defined qualified appraiser as an individual who:
- Has an appraisal designation from a professional appraisal organization (Appraisal Institute, NAIFA, ASA, etc. ) or met minimum education and experience requirements
- Regularly prepares appraisals as a business
- Has education & experience valuing the type of subject property
- Has not been prohibited from practicing before the IRS under section 330(c) of Title 31 of the United States Code during the three-year period ending on the date of the appraisal
- Is not someone who is the donor or recipient of the property.