Asset Insights for Life's Transitions

What Is an IRS‑Qualified Appraiser?

An IRS‑qualified appraiser is a professional who meets specific federal requirements for education, experience, independence, and documentation. To be considered “qualified,” the appraiser must be competent to value the exact type of property involved—not simply hold a general appraisal credential.

This distinction is critical when an appraisal will be used for charitable contributions, estate‑tax filings, or other tax‑related purposes. Because requirements vary by assignment, donors and executors should consult their CPA or tax attorney to ensure the appraisal meets the correct IRS standards.

IRS Qualification Requirements

For noncash charitable contributions, the IRS generally requires that a qualified appraiser must:

• Hold a recognized appraisal designation from a reputable professional organization or meet specific education and experience criteria

• Have documented education and experience valuing the same category of property being appraised

• Regularly prepare appraisals for compensation

• State in the report that they are qualified to appraise the subject property

• Describe their relevant training and experience within the appraisal

• Not fall under any prohibited or excluded categories defined by Treasury regulations

Qualification must match the assignment. For example, experience appraising fine art does not automatically qualify an appraiser to value firearms, jewelry, rare coins, business assets, or an entire household of mixed personal property.

What Is a Qualified Appraisal?

A qualified appraiser and a qualified appraisal are two separate requirements. Even if the appraiser is qualified, the report itself must also meet IRS rules.

A qualified appraisal for charitable‑contribution purposes must:

• Be prepared, signed, and dated by a qualified appraiser

• Follow generally accepted appraisal standards

• Identify and describe the property in sufficient detail

• State the valuation date and intended use

• Include the appraiser’s qualifications

• Report the correct type of value (typically fair market value)

• Be completed within the IRS‑specified time frame

• Avoid any prohibited fee arrangement

For donations of property valued above $5,000, the donor must obtain a qualified appraisal and complete Section B of IRS Form 8283, which is filed with the federal income‑tax return.

IRS Qualification vs. USPAP Compliance

IRS rules require that a qualified appraisal follow generally accepted appraisal standards, and IRS Form 8283 specifically references the principles found in USPAP.

However, the terms are not interchangeable:

• USPAP compliance refers to how the appraisal is developed and reported

• IRS qualification refers to whether the appraiser and appraisal meet federal tax requirements

For tax‑related assignments, both standards may apply simultaneously.

Who Cannot Serve as an IRS‑Qualified Appraiser?

IRS regulations exclude certain individuals from acting as qualified appraisers for a specific contribution. Disqualifications may include:

• The donor or the donee organization

• Anyone involved in the transaction in which the donor acquired the property

• Individuals closely related to, employed by, or financially connected with the donor or recipient

• Appraisers prohibited from practicing before the IRS

• Anyone receiving a fee tied to the appraised value or tax deduction

These restrictions help ensure independence and prevent conflicts of interest.

Questions to Ask Before Hiring an Appraiser

Before engaging an appraiser for a tax‑related assignment, consider asking:

• Do you regularly perform paid appraisals for this type of property?

• What education, training, and designations qualify you for this assignment?

• Will your qualifications be included in the report?

• Will the appraisal identify the valuation date, intended use, and type of value?

• Will the report meet IRS requirements and accepted appraisal standards?

• Is your fee independent of the value concluded or the tax deduction claimed?

• Can you complete the required Form 8283 declaration?

• Should my CPA or tax attorney review the assignment before we begin?

How The Peterson Exchange Supports Tax‑Related Assignments

The Peterson Exchange provides personal property appraisals for estate settlement, charitable contributions, insurance, fiduciary needs, and other specialized purposes. Each assignment is structured around:

• The property involved

• The valuation date

• The intended use

• The requirements of the client’s tax or legal professionals

For charitable contributions, our role is to provide an independent valuation and complete the appraiser declaration on Form 8283 when required. The donor and their tax adviser remain responsible for determining deductibility and reporting.

If you’re unsure whether your situation requires an IRS‑qualified appraisal, The Peterson Exchange can help you determine the correct approach before the assignment begins.

This information is educational and not tax or legal advice. IRS requirements vary by assignment and may change. Consult a qualified tax professional regarding your specific circumstances.

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