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IRS-Related
Welcome to Home Point Appraisal, Your Trusted
Real Estate
IRS-Related
Appraiser
An IRS-Related Appraisal is a professional property valuation prepared to comply with Internal Revenue Service requirements for tax reporting purposes. These appraisals are commonly used for estate and gift tax, charitable donations, or property transfers. The appraiser provides an independent, well-documented opinion of fair market value to ensure accurate tax reporting and help prevent disputes or penalties with the IRS.
Why Choose Home Point Appraisal?
With over 25+ years of experience in the SoCal real estate industry, we have expertise and knowledge of your local market. Call us for fast response or click the button below to get an instant quote.
Frequently Asked Questions — IRS-Related Appraisal
What IRS situations require a real estate appraisal?
Common IRS scenarios needing an appraisal: estate tax returns (Form 706) for date-of-death values, gift tax returns (Form 709) for non-cash gifts of real estate, charitable contributions of real estate over $5,000 requiring Form 8283, like-kind exchanges (Section 1031), basis step-up documentation at death, and IRS examinations or audits involving real estate values.
Does the IRS require a “qualified appraisal” or “qualified appraiser”?
Yes. For contributions over $5,000, the IRS requires a “qualified appraisal” performed by a “qualified appraiser” as defined in IRC Section 170(f)(11) and related regulations. Qualifications include: state licensing or certification, professional designation (ASA, SRA, MAI), regular appraisal practice, and demonstrable competence with the property type. Glenn meets these standards as an ASA-credentialed Certified Residential Appraiser.
What standard of value does the IRS use?
The IRS uses Fair Market Value (FMV) as defined in Treasury Regulation 20.2031-1(b) and Revenue Ruling 59-60: “The price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell.” Both parties are assumed to have reasonable knowledge of relevant facts. Our IRS appraisals apply this standard precisely.
How does an IRS appraisal differ from a lender appraisal?
Methodology overlaps substantially — both use sales comparison analysis under USPAP. The differences: IRS appraisals are typically retrospective (effective as of date of death or gift date), use the IRS-specific FMV standard, may require additional discount analysis for fractional interests or restrictions, and need narrative documentation that anticipates IRS examiner questions. Reports must include all elements required by IRS regulations.
What if the IRS challenges my appraisal?
A well-prepared, properly documented IRS appraisal is the best defense against examination. If the IRS questions the value, the appraiser provides supplemental documentation, responds to information document requests, and (if needed) participates in IRS meetings or testifies in Tax Court. Glenn has experience supporting IRS-related appraisals through examination and is qualified for Tax Court testimony.
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