A variety of business activities require an appraisal of personal property.
The IRS requires an appraisal by a qualified appraiser for deductions of charitable donations of higher value items. The IRS mandates that any charitable contribution of an item with a fair market value of more than $5K must have a certified appraisal by a “qualified appraiser” attached to your return, as well as the submission of IRS form 8283. Items with a fair market value over $20K should be submitted with a professional 8” x 10” photograph or a 4” x 5” transparency.
Damage and Casualty Loss
In the event of damage or loss, an appraiser can provide valuation for the replacement cost of the property, or the cost to restore or repair the property to make the client “whole”. This can also be provided for individuals who suffer damage to their property as a result theft or natural disasters (such as floods, fires or tornados).
Equitable Distributions and Divorce
Equitable distribution appraisals inventory and value property to ensure its fair distribution in instances such as divorce, business dissolution and estate distribution among heirs.
Required by the IRS and many states, if the total estate is over a certain value threshold, everything needs to be appraised and valued as of the date of death (or alternate date). The IRS requires room by room inventory of the complete residential contents.
Insurance appraisals assist your insurance broker in providing proper insurance coverage for valuable personal property. An insurance appraisal is written to ensure complete replacement cost coverage often required in claims involving loss, theft, damage, or destruction from fire, smoke or flood. All insurance claims require proof the item existed and the value of the item at time of its loss.
Frequently, with the stress of moving, homeowners overlook the importance of having valuable household items appraised. Having an appraisal will assist the homeowner in determining the correct coverage needed from the moving company or insurance agent prior to the move. This appraisal needs to be performed before the items have been packaged and transported.
An appraisal can inform a client as to the value of an object (furniture, paintings, decorative objects and more) before making it available for sale. This provides the client an independent, impartial assessment to determine the correct marketplace to sell their object.