IRS Ruling Cites the Uniform Standards of Professional Appraisal Practice
August 7, 2018 |
According to a press release from The Appraisal Foundation, the Internal Revenue Service (IRS) has issued a new rule. The Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions rule explains how these contributions should be valued.
Take note; this rule mentions the Uniform Standards of Professional Appraisal Practice (USPAP) of The Appraisal Foundation. The Foundation’s Appraisal Standards Board (ASB) develops and promotes USPAP – standards for ethics and performance in the US appraisal industry. The US Congress has recognized USPAP for real property valuations since 1989.
More specifically, this new rule discusses the term qualified appraisal. Section III (B) of this rules states that appraisals must be performed by a qualified appraiser in keeping with the “substance and principles of USPAP as developed by the ASB of the Appraisal Foundation.” This interpretation includes charitable contributions of all property types.
David Bunton, President of The Appraisal Foundation, is very much in favor of the ruling. He’s quoted as saying “This action by the IRS only underscores its importance and relevance to all valuation issues.” Those making charitable contributions or property for tax deductions must make certain that items worth $5,000 or more are appraised by a qualified professional in compliance with USPAP.
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