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Define "Qualified Appraiser"

Posted Mar 19, 2013
Written by Abigail Athanasopoulos
Category General

qualified appraiserThrough the efforts of various professional organizations, including the American Society of Appraisers, and the development of the Uniform Standards of Professional Appraisal Practice in the 1980s, the field of personal property appraising has become increasingly regulated and the standards to which its appraisers are held are continuously being raised. However, while real estate appraisers are subject to the licensing requirements of their state, no such requirements exist for personal property appraisers. This can make it a bit more difficult for property owners to vet possible appraisers and determine who is qualified to meet their needs and who is not.

When hiring an appraiser to appraise properties that are a part of a charitable contribution or an estate, this determination is perhaps made a bit easier as the IRS defines in IRS Pub. 561 what constitutes a “qualified appraiser” and requires that the taxpayer use an appraiser that meets all of these requirements. Although appraiser requirements for appraisals for other intended uses, such as insurance coverage or property division, are not as clear-cut, property owners would be prudent to use this definition of a “qualified appraiser” as part of their decision-making process, particularly in the absence of state regulation/licensing. We encourage individuals to review IRS Pub. 561, particularly in light of changes under the Pension Protection Act of 2006 that increased the requirements of a “qualified appraiser.”