Portfolio & Charitable Donations

Who orders this appraisal

• Donors
• Nonprofits & land trusts
• Portfolio owners
• CPAs

What the engagement covers

• Portfolio analysis
• IRS Form 8283 support
• Charitable contribution substantiation
• Strategic repositioning

The rules that govern it

Treas. Reg. §1.170A-17, qualified appraisal and qualified appraiser, The regulation defining both terms. A donation deduction does not turn on getting the value right. It turns on whether the appraisal meets this definition. A technically sound valuation delivered on the wrong basis still gets disallowed, which is the trap donors fall into.

The 60-day rule, The appraisal must be made no earlier than 60 days before the date of contribution. An appraisal you already had for another purpose, refinancing, an estate, a listing. Will usually not qualify, however recent it feels.

Form 8283, three thresholds, three different obligations, Over $500 in noncash contributions requires Form 8283. Over $5,000 requires a qualified appraisal and Section B, signed and dated by both the appraiser and the donee organisation. Over $500,000 requires the appraisal itself be attached to the return. Each threshold adds an obligation rather than replacing the last.

IRC §170(f)(11), substantiation, The statutory framework behind those thresholds. Substantiation failures are a common reason deductions are denied, independently of whether the value was right.

Appraiser penalties, Federal law imposes penalties on appraisers whose valuations result in substantial or gross valuation misstatements on a return. That is one reason a qualified appraiser will not simply produce the number a donor hopes for, the exposure runs to the appraiser as well as the taxpayer.

Conservation easements, IRC §170(h), Qualified conservation contributions are their own regime and a standing IRS enforcement priority, particularly syndicated arrangements. These assignments carry a materially higher likelihood of examination, and the report should be built on that assumption from the outset.

How it works

1. Confirm the intended deduction amount, because it determines which threshold applies and therefore what the engagement must produce.
2. Confirm the contribution date and work backwards. The appraisal must fall within the 60-day window before it.
3. Identify the donee organisation, which must sign Section B.
4. Develop and report the value to the qualified appraisal standard, not to a general market value standard.
5. Sign Section B, and supply the report for attachment where the deduction exceeds $500,000.

What you receive

Qualified appraisal with donation substantiation support. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.

Common questions