Why am I, Michael C. Fanelli a qualified appraiser and Why?

I am the definition of a qualified appraiser, and this is what I do:

Your question may be, "Who should I choose as a qualified appraiser?" My answer is this: to the party reading this, who is looking for qualifications and wants to know more about the laws and guidelines that define a qualified appraiser. This is a very serious process, and I will inform you of all the reasons why you should hire a qualified appraiser. It is important not to hire someone who is not a qualified appraiser, as per the Internal Revenue Service (IRS) standards. You must ask them whether they are U.S.P.A.P. (Uniform Standards of Professional Appraisal Practice) compliant. My answer to you is YES, I am. That’s all you need to know. Contact Fran's Tag Sale Ltd for more details.

I, Michael C. Fanelli, have earned an appraisal designation from a recognized professional appraiser organization, as required by the United States Treasury regulations.

I, Michael C. Fanelli, regularly perform appraisals for which I receive compensation, demonstrating verifiable education and experience in valuing the type of property subject to the appraisal.

I, Michael C. Fanelli, have never been prohibited from practicing before the IRS and meet all other requirements prescribed by the United States Treasury regulations.

Definition of a Non-Qualified Appraiser:

A non-qualified appraiser is someone who cannot be:

• The donor
• The donee
• A party to the donee’s acquisition of the property
• Employed by or related to any of the above, or regularly used by any of the above, unless the majority of the work is performed for others.

What information must be included in a "Qualified Appraisal"?

Under existing regulations, a qualified appraisal must include the following:

• A detailed description of the property, including its physical condition. A good test for this is to have someone who is not part of the transaction (such as the donor or donee) read the description to see if they can understand exactly what is being described.
• The date (or expected date) of the gift.
• The terms of the gift, including any limitations.
• The identity of the appraiser, along with all of their qualifications.
• A statement from the appraiser explaining that the appraisal is being prepared for a specific purpose (e.g., "tax-related").
• Whether the appraiser consulted with the person in charge about the procedure and how the appraisal should be written.
• The preparation date – the day the appraiser visits the premises to begin the appraisal.
• Whether the qualified appraiser stated the purpose of the appraisal and market value (i.e., fair market value).
• The definition of "fair market value.

Do I need to explain the definition of fair market value?

Yes, it’s important to understand the purpose of the appraisal and the method used for valuation. Here are some examples of when an appraisal is needed:

• Explanation of the method used for the valuation.
• Whether there was a specific basis for the valuation.
• The appraiser's declaration.

These are all necessary components.

What is an Appraisal Summary?

When dealing with the IRS, a Form 8283 is used as the appraisal summary. An individual claiming a charitable contribution deduction of property worth more than $5,000, other than cash or publicly traded securities, must attach a "Qualified Appraisal" from a qualified appraiser (like myself) along with an appraisal summary to their tax return. The appraisal summary will include the following:

• Identifying information about the donor and a brief description of the property.
• The date and manner in which the donor acquired the property.
• The amount of consideration paid to the donor if the gift involved a bargain sale.

To Be Continued...

Please call me with any questions that you might have.