When you donate valuable items to charity, understanding IRS appraisal requirements can save you thousands in tax deductions. The IRS requires a qualified appraisal for non-cash charitable donations valued over $5,000, and without proper documentation, your entire deduction could be denied.
Quick Answer: Yes, you need a qualified appraisal from a certified appraiser for charitable donations over $5,000. The appraisal must be completed within 60 days of donation and include specific IRS-required elements to claim your tax deduction.
Whether you're donating artwork, real estate, vehicles, or business equipment, knowing these requirements upfront protects your deduction and ensures compliance. This guide walks you through exactly what the IRS expects and how to get it right the first time.
The IRS doesn't accept just any valuation for charitable donations. A qualified appraisal must meet strict federal standards outlined in Treasury Regulation 1.170A-17. Think of it like a passport for your donation - without the right credentials, you can't cross the tax deduction border.
Your appraisal must reflect the fair market value of your donated property on the date of contribution. Fair market value means the price a willing buyer would pay a willing seller when neither is forced to act and both have reasonable knowledge of relevant facts.
The appraisal fee structure matters too. The IRS prohibits appraisals where the fee depends on the appraised value, as this creates obvious conflicts of interest. Only flat fees or hourly rates are acceptable.
Most importantly, your appraisal must follow generally accepted appraisal standards, specifically the Uniform Standards of Professional Appraisal Practice (USPAP). This ensures consistency and reliability across all charitable donation appraisals.
Not everyone can appraise your donation for tax purposes. The IRS requires qualified appraisers who meet specific education and experience criteria. Your appraiser must be credentialed by a nationally recognized appraisal association and have demonstrated expertise in valuing your specific type of property.
The appraiser cannot be you, the charity receiving the donation, or anyone who sold you the property being donated. This independence requirement prevents conflicts of interest that could inflate valuations.
Your qualified appraiser must regularly prepare appraisals for compensation and hold themselves out to the public as an appraiser. Weekend appraisers or occasional valuators don't meet IRS standards.
Important Note: The appraiser must sign and date your appraisal, declaring their qualifications and stating the appraisal was prepared for income tax purposes.
Professional credentials from organizations like the American Society of Appraisers (ASA) or the Appraisal Institute typically satisfy IRS requirements, but always verify your appraiser's specific qualifications for your property type. Understanding why an appraisal is necessary for charitable donations can help you appreciate the importance of working with qualified professionals.
Timing is everything with charitable donation appraisals. You must obtain your qualified appraisal no earlier than 60 days before the donation date and no later than the due date of your tax return claiming the deduction.
Your appraisal must include specific elements to satisfy IRS requirements. The document needs a detailed property description, the valuation date, your appraiser's qualifications and signature, and the specific valuation method used.
Required ElementPurposeIRS RequirementProperty DescriptionIdentifies donated itemMust be detailed enough for unfamiliar person to understandValuation DateEstablishes timingWithin 60 days of donationAppraiser SignatureConfirms qualificationMust include declaration of competencyValuation MethodShows how value determinedMarket, cost, or income approach
You'll also need to complete Form 8283 and attach the appraisal summary to your tax return. For donations over $20,000 in artwork or over $500,000 for any property, you must attach the complete appraisal report.
The charity must sign the Form 8283 acknowledging receipt of your donation, but they cannot pay for or arrange your appraisal. This responsibility falls entirely on you as the donor. Learn more about IRS Form 8283 appraisals and everything you need to know to ensure proper compliance.
Many donors lose their tax deductions due to preventable appraisal errors. Using an unqualified appraiser is the most common mistake, often discovered only during an IRS audit when it's too late to fix.
Timing violations frequently occur when donors wait too long to get appraisals or donate items after the 60-day window expires. Once this deadline passes, you need a new appraisal based on the actual donation date.
Incomplete documentation kills many deductions. Missing appraiser signatures, inadequate property descriptions, or failure to include required Form 8283 sections can invalidate an otherwise valid donation.
Fee arrangement problems also cause issues. If your appraiser's compensation depends on the appraised value, the IRS will reject the entire appraisal regardless of accuracy.
Pro Tip: Always review your appraisal against the IRS checklist before filing your return. A small oversight can cost you thousands in lost deductions.
Some donors try to use insurance appraisals or estate planning valuations for charitable donations, but these rarely meet IRS standards for tax deduction purposes. Avoid these pitfalls by reviewing the 10 common mistakes to avoid when filling out IRS Form 8283.
Getting your charitable donation appraisal right protects your tax benefits and ensures your generosity receives proper recognition. The IRS requirements might seem detailed, but they're designed to prevent abuse while supporting legitimate charitable giving. When you follow these guidelines and work with qualified professionals, you can confidently claim your deductions knowing you've met all federal requirements.
AppraiseItNow's certified appraisers understand these IRS requirements inside and out. We work in all 50 states and specialize in charitable donation appraisals that meet every federal standard, helping you maximize your tax deductions for donated items while supporting the causes you care about.
No, you don't need a qualified appraisal for donations under $5,000. However, you must still file Form 8283 for any non-cash charitable donations over $500. Only donations over $5,000 require a qualified appraisal and an appraiser-signed summary section on Form 8283.
No, the donor must arrange and pay for the appraisal themselves. The charity cannot pay for or arrange your appraisal as this would create a conflict of interest. Additionally, appraisal fees cannot be deducted as a charitable contribution, and the appraiser's fee cannot be contingent on the appraised value.
Starting in 2026, itemized deductions will face a 0.5% adjusted gross income (AGI) floor, meaning only amounts exceeding 0.5% of your AGI will be deductible. Non-itemizers will be able to deduct up to $1,000 (single) or $2,000 (married filing jointly) in cash donations above the standard deduction. Non-cash gifts over $5,000 will still require qualified appraisals.
The appraisal must be completed by your tax filing deadline (including extensions), but the valuation date must be within 60 days prior to the donation date. You cannot get an appraisal more than 60 days before making the donation, and you must have the completed appraisal before filing your tax return to claim the deduction.
