Qualified Appraiser and Qualified Appraisal

Qualified Appraiser and Qualified Appraisal

Appraisals of land, especially land with subdivision potential, are substantially different from typical residential property appraisals. Appraisals of conservation easements are even more highly specialized.

The IRS has specific requirements for reporting on and determining the value of charitable gifts. These are highly detailed and complex for gifts of property valued at more than $5,000, which includes most donations of land or conservation easements to land trusts.

IRS requirements for a qualified appraisal:

  • prepared by a qualified appraiser for gifts of property valued at more than $5,000
  • including information on the timing of the appraisal
  • that the donor is responsible for any determination of the value of the donation
  • that the donor should use a qualified appraiser who follows Uniform Standards of Professional Appraisal Practice

You should also be aware that:

  • the land trust will most likely request a copy of the completed appraisal,
  • and that the land trust will not knowingly participate in projects where it has significant concerns about the tax deduction.

The effective date of value in the qualified appraisal must be no earlier than 60 days before the date of the contribution, and the appraisal must be in the hands of the taxpayer no later than the due date (including extensions) for filing the tax return in the tax year in which the contribution is claimed.

The Pension Act defines a “qualified appraiser” under Internal Revenue Code §170(f)(11)(ii) and (iii) as an individual who:

  • Has earned an appraisal designation from a recognized professional appraisal organization or has otherwise met minimum education and experience requirements;
  • Regularly performs appraisals and receives compensation;
  • Meets other requirements as may be prescribed by the Secretary;
  • Demonstrates verifiable education and experience in valuing the type of property subject to the appraisal; and
  • Is not an individual who has been prohibited from practicing before the Internal Revenue Service during the prior three years.

Paul K. Bidwell, MAI, SRA, ASA, CCIM has met all requirements as a “Qualified Appraiser”.

Affinity Valuation Group LLC
Located in: Ann Arbor, & Saline, Michigan

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

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The material and information contained on this website is the copyrighted property of Affinity Valuation Group, LLC. Any contents within this website may not be reproduced or republished without prior written permission from Affiinity Valuation Group, LLC. The information on this website is meant for educational and commercial purposes. It is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for any form of real estate transaction or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. No employee of Affinity Valuation Group, LLC will appear in any court of law and in any capacity based on any information posted within this website.

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