# Understanding Qualified Appraisals: Key IRS Guidelines and Benefits

A qualified appraisal is an appraisal that meets the requirements set forth by the Internal Revenue Service (IRS) and is conducted by a qualified appraiser. Qualified appraisals are made no earlier than 60 days before a piece of property is donated. An appraisal is a professional assessment of a property's or asset's market value, typically required for insurance, taxation, or mortgage purposes.

### Key Takeaways

*   A qualified appraisal must meet specific IRS standards and be conducted by an appraiser who is recognized as qualified, ensuring proper valuation of donated property.
*   Qualified appraisers must have an appraisal designation from a professional organization and meet education and experience requirements. They often hold licenses or certifications in the state where the property is located.
*   Form 8283 is used to report non-cash charitable contributions to the IRS. Donations exceeding certain limits require a qualified appraisal to accompany the form.
*   Accurate appraisals are crucial for determining the correct tax deduction for property donations, preventing potentially lower deductions or IRS scrutiny for valuations that seem too high.
*   The process of becoming a qualified appraiser includes completing specific coursework and obtaining at least two years of experience in the field of evaluating similar types of property.

## Understanding the Process of a Qualified Appraisal

Qualified appraisal refers to a [type of appraisal](https://www.investopedia.com/terms/a/appraisal.asp) document that meets [Internal Revenue Service (IRS)](https://www.investopedia.com/terms/i/irs.asp) appraisal standards. These appraisals must be conducted by a [qualified appraiser](https://www.investopedia.com/terms/a/appraiser.asp). Determining the value of a piece of property is especially important when making a donation, since an improper valuation can result in either a deduction lower than what the property could bring or a red flag by the IRS for a valuation that seems too high.

A qualified appraiser is an individual who has earned an appraisal designation from a recognized professional appraiser organization. This designation is awarded on the basis of demonstrated competence in valuing the type of property for which the appraisal is performed.

An individual can also become a qualified appraiser if they have met the minimum education and experience requirements set forth by the IRS. One way an appraiser of property can demonstrate they have met these requirements is to become licensed or certified in the state in which the appraised property is located.

A qualified appraiser has also successfully completed college and professional-level coursework and has obtained at least two years of experience in the business of buying, selling, or valuing similar types of property.

## Utilizing Form 8283 for Non-Cash Contributions

A qualified appraisal document is used to notify the IRS that the value of a piece of property is in excess of $5,000, and is attached to [Form 8283](https://www.investopedia.com/terms/f/form-8283.asp) and filed with a tax return if a deduction is being requested. Form 8283 is used to report information about non-cash charitable contributions and is required if a taxpayer’s deduction for all non-cash gifts exceeds $500. Individuals, partnerships, and corporations can all file Form 8283.

Form 8283 has two sections. The type of property donated and the amount claimed as a deduction determine whether a person fills out one section or both.

Section A is used to report both donations of property for which an individual claims a [deduction](https://www.investopedia.com/terms/d/deduction.asp) of $5,000 or less and donations of publicly traded securities. Publicly traded securities include securities with daily published quotations that are listed on an exchange, as well as securities that are shares of a [mutual fund](https://www.investopedia.com/terms/m/mutualfund.asp). Section B is used to report donations of property with deduction claims of more than $5,000 per item or group of similar items.

> **Article Sources**
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> 1.  Internal Revenue Service. "[Publication 561, Determining the Value of Donated Property](https://www.irs.gov/pub/irs-pdf/p561.pdf)," Page 9.
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> 2.  Internal Revenue Service. "[Publication 561, Determining the Value of Donated Property](https://www.irs.gov/pub/irs-pdf/p561.pdf)," Pages 10-11.
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> 3.  Internal Revenue Service. "[Instructions for Form 8283: Noncash Charitable Contributions](https://www.irs.gov/pub/irs-pdf/i8283.pdf)," Page 1.
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> 4.  Internal Revenue Service. "[Form 8283: Noncash Charitable Contributions](https://www.irs.gov/pub/irs-pdf/f8283.pdf)," Pages 1-2.
>     
> 5.  Internal Revenue Service. "[Instructions for Form 8283, Noncash Charitable Contributions](https://www.irs.gov/pub/irs-pdf/i8283.pdf)," Page 1.