Generosity brings joy and satisfaction, and when you donate items to a nonprofit organization, you get to experience these feelings while knowing that your gift is going to a good cause. What’s more, you can receive a tax deduction of the full market value of the items you donate – a great incentive to give back to your community.
For donations valued at over $500: The organization receiving the donation must be a qualified charity, and the mission of the organization must be related to the type of donation you are making.
For donations valued at over $5,000: You must have a written donation appraisal report prepared by a qualified personal property appraiser.
For donations valued at over $20,000: The appraisal report and appraiser’s qualifications must be submitted along with your tax return.
Not only will we provide you with the necessary report and documentation you will need to report to the IRS, we can offer guidance on the specific forms to fill out to ensure your donation is documented correctly.
It is important to assess the value of all of a decedent’s assets, including real estate, upon their passing. This includes any real property that may be owned. When the fair market value of the estate exceeds the annual unified credit exemption, federal estate tax returns are required. A qualified personal property appraiser must be hired to prepare an estate tax appraisal for the personal property, including any single item valued over $3,000 or a collection valued over $10,000. A written and signed estate tax appraisal report, including the appraiser’s qualifications, must be submitted in these cases.
IRS 706 Taxable and IRS Portability Estates are our specialty. IRS form 706 is required when the estate of a decedent increases by a certain amount which is why knowing the value of the estate is so important.
Dealing with the death of a loved one can be a difficult time for families. Our team is here to help you navigate the process of valuing the decedent’s assets, like real estate, with empathy and understanding. We understand that it can be an emotional time, and we’re here to ensure that you are able to complete the process in a respectful way.
An equitable distribution appraisal is designed to ensure that any property previously held in common is divided in a fair and just manner, or that proper compensation is provided if that is not a viable option. It is meant to provide a sense of equity and fairness for all parties involved.
If you and the other person or people involved in the property agreement cannot come to an agreement on how to divide the assets, an equitable distribution appraisal may be necessary. This type of appraisal does not focus on the monetary value of the properties, but rather looks at the fairness of how the assets are divided among the participants.
You may need an equitable distribution appraisal when:
You are getting a divorce – The court may need to determine the fair market value, the net value, or some other type of value of the marital property that you and your spouse once co-owned. To help the court accurately assess the value of the assets, it’s important to provide any relevant information that can be used to make an informed decision.
You are the beneficiary of a shared estate – To fairly divide the inherited property, it would be beneficial to obtain an appraisal. This would provide an accurate value of the property, ensuring that all beneficiaries receive their rightful share.
You are severing a business partnership or a business fails – An appraisal is often necessary when a business is being dissolved or one partner is buying out the other’s interests. In the case of dissolution, all property such as furniture, fixtures and equipment may need to be auctioned off quickly in order to ensure an orderly liquidation value. When a partner is buying out the other, the appraisal will be used to determine the monetary value that must be paid to the partner who is exiting the company.
When it comes to protecting your precious fine art, antiques, jewelry, stamps, coins, guns and other collectibles, the standard insurance policy may only cover up to $1,500 – $2,500 of their value in the event of a loss or damage. To ensure that your collection is safeguarded, consider purchasing an extended coverage endorsement or a personal articles floater. If the replacement value of your items exceeds $3,000 or $5,000, your insurance company may require an appraisal. Additionally, it is wise to update your appraisal every 3-5 years to ensure that your coverage is still adequate in the event of an unforeseen loss.
Depending on the estimated cost to replace the item and the claim procedure requirements, you may need an expertly written loss or damage claim assessment. Unfortunately, a sales receipt, invoice, “appraised value” statement, or Certificate of Authenticity may not be enough evidence for your claim with the insurance company. This appraisal report will objectively assess the damage and determine if a professional report or full replacement of the item is necessary. With the help of this appraisal, you can be sure that you are receiving the most accurate and comprehensive assessment of the damage and the best outcome for your claim.
Having an appraisal report that reflects your current insurance coverage ready before a loss or damage occurs can be incredibly useful. It allows you to clearly see the difference between the item’s condition before the incident and the damages caused by it. Having this information before the loss or damage has occurred can make it easier for you to make an accurate claim for the damages.
Losing or having a valuable item or items damaged can be heartbreaking and very difficult to cope with. We understand that the process of filing a claim and receiving compensation can be confusing and overwhelming, so we want to offer our help. We have a lot of experience in dealing with these stressful situations and we will make sure to handle everything with courtesy and respect.
A liquidation appraisal is often necessary when personal property must be divided, sold, or converted into a cash equivalent in a timely manner. These appraisals are frequently used in the event of inheritance, divorce, business dissolution, or any other instance when personal property is being transferred. To ensure that the value of the personal property is accurately captured, it is important to enlist the expertise of a professional appraiser. This will guarantee a fair and equitable distribution of the assets.
Estate Assessment and Evaluation Reports
When a written report is necessary for a third party for a small estate with minimal value, we provide a document that verifies the contents and gives an estimated value for estate and/or settlement purposes.
This is a non-fee service that we provide to attorneys, trust departments, fiduciaries, retirement centers, and to the general public to help steer them to the best sources available in the industry.
We want what is best for you and that is why we provide a verbal estate assessment with recommendations for a nominal charge.
Supervision and Oversight
We can assist our clients by supervising a service such as a move, shipping, or what ever else might be needed to help facilitate a situation.
Frequently Asked Questions
What type of items do you appraise?mroller2023-02-03T04:25:09-07:00
While we are based out of Phoenix, we are happy to provide services across Arizona and beyond. We frequently travel to Chandler, Gilbert, Mesa, Tucson, Glendale, and Scottsdale, as well as various cities in California and New Mexico, including Albuquerque, Palm Springs, Cathedral City, La Quinta. Some home appraisals have required more distant trips, like to Salt Lake City and Las Vegas, which we are open to. If you have any questions about our services, please do not hesitate to get in touch. We are here to help!
What can be done to help prepare for the appraisal?mroller2023-02-03T04:25:23-07:00
Examination: The appraiser examines all the property to be included in the final report, noting and evaluating characteristics, conditions, and measurements of most items.
Photographs: Digital images are taken to document the item’s existence and aid in research. These photographs are included in the final report.
Research: Each item is studied and researched to determine its value based upon comparable sales and histories. Research time may include identification of marks, labels, dates, and locations; analysis of comparable items; market research; and expert consultation.
Reporting: The final report from A-Z Appraisal & Estate Consultants consists of a bound copy of the completed appraisal along with the appraiser’s qualifications, purpose, and basis of appraisal. The report includes the inventory, market research, valuation, and necessary comments pertinent to the property. Each item or group of items has a description, age (if appropriate), measurements, condition, value, and photograph. All A-Z Appraisal reports are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).
What are the different types of appraisals?mroller2023-02-03T04:26:23-07:00
A-Z Appraisal & Estate Consultants specialize in several types of appraisals, including the following:
Insurance appraisals provide necessary documentation to substantiate the existence, condition, and replacement value of your belongings. It is wise to have an update done every five years or ahead of any pending household move.
Estate appraisals are necessary for taxable estates. This appraisal includes an efficient catalog of property that meets IRS requirements, but without the level of detail normally provided for an insurance appraisal.
Donation appraisals are suggested by the IRS to substantiate a tax deduction above $1000. Donation appraisals are REQUIRED for anything above $5000 that has been given to a charitable institution. A-Z Appraisal’s advice: When in doubt, appraise.
Pre-move appraisals provide an inventory of your high value items to substantiate both their value and existence. Due to the limited level of protection provided by moving companies to account for damage or loss, these appraisals will help you to purchase additional insurance and recover any damages incurred during the move.
Equitable distribution appraisals help settle divorces or estates for fair distribution of property based on fair market value.
Trust or will inventory appraisals will be attached to the trust or will, and a copy will be given to the trust attorney. They will now have knowledge of your property, and with your comments on the report, they will know who is to inherit which items.
Full appraisal services should only be conducted by educated and nationally certified appraisal experts. That expert will provide you with a formal written and descriptive report, complete with photos, and they should be willing to defend their assessment in court. The report should include any limiting or qualifying conditions, the appraiser’s qualifications, a complete and accurate description of the items, market analysis, markets selected, and well-defined value conclusions.
Who needs an appraisal?mroller2023-02-03T04:25:47-07:00
An appraisal is a professional assessment of property to determine fair market value. Assessments are most often used for tax and insurance purposes or in estate planning or wills.
Being an appraiser is not an exact science, so it is essential for personal property appraisers to stay up-to-date in their profession by maintaining valid credentials with a professional appraiser association and engaging in regular continuing education. Additionally, it is important for appraisers to follow the strict codes of conduct and standards of report writing that are established for the profession.
A-Z Appraisal & Estate Consultants 5525 North 12th Street Phoenix, Arizona 85014