IRS APPRAISAL
Required when you are donating a conservation easement AND you want to claim a tax deduction (and who doesn’t!).
An IRS appraisal is compatible with USPAP, aka Uniform Standards of Professional Appraisal Practice. Read USPAP here.
You’ll file IRS form 8283 with a copy of the appraisal to claim the deduction. This IRS form MUST be signed by the appraiser and by the donee.
The tax deduction is the value of the conservation easement and can be taken against 50% of your income for up to sixteen years. The conservation easement must be made before year-end 2009 to take full advantage of this huge deduction. Read more here.
There are also estate tax benefits available. Read more here.
The date of valuation in the appraisal can be no more than 60 days before you convey the conservation easement. The appraisal can be made after conveyance, but must be before you file your taxes for 2009.
The IRS imposes severe penalties for over-valued appraisals. Both the donor and the appraiser are subject to these penalties. Read more here.
Title; Appraiser must analyze the original purchase when your ancestors first bought the property.
Larger parcel rule – All real estate in the area owned by you and your family must be considered in the appraisal. In this sense, your family includes your spouse, parents and grandparents, children and grandchildren, and your brothers and sisters. Also corporations, partnerships, and trusts you control
Conservation Easement, also known as a partial acquisition
- Two appraisals are required; Before and After the Conservation Easement
- The difference (Before minus After) is the value of the Conservation Easement