Appraisal for Gift Tax in Ohio

AppraiseItNow appraises many different asset types for gift tax filings, including: 

• Business Interests: Privately-held shares in companies or funds, LLCs, notes, real estate, and more 
• Personal property: Furniture, household items, jewelry, sports memorabilia
• Art: Museum-grade and lower-tier artwork
• Machinery & Equipment: medical equipment, trailers, tractors, CNC machinery
• Inventory: large quantities of assets, manufactured or purchased
• Cryptocurrency: Bitcoin, NFTs, Ethereum
• Vehicles: cars, boats & marine surveys, trucks, buses

Who We Service

For charitable contribution appraisals, we mainly service: 

• Households & HNWIs
• Operating businesses
• Estate planners and attorneys
• Registered Investment Advisors
• Tax planners
• Accountants and Tax Attorneys

Do you need an appraisal for a gift tax return?

An appraisal is generally required when the gifted property does not have a readily available public market price. While cash and publicly traded securities can usually be valued using objective market data, many other transfers require an independent opinion.

Common situations where an appraisal is typically necessary include gifts of closely held business interests, family limited partnership units, real estate interests, artwork, collectibles, and other unique or illiquid property.

A qualified appraisal is often critical to support adequate disclosure, which helps start the statute of limitations for IRS review.

How do you value a gift for tax purposes?

Gift tax reporting is based on fair market value at the time of transfer.

The standard generally reflects the price at which property would change hands between a hypothetical willing buyer and seller, with neither under compulsion and both aware of relevant facts. Depending on the asset, the analysis may consider market comparables, financial performance, control characteristics, liquidity, and economic conditions.

Because these valuations may later affect estate tax calculations, consistency and supportability are essential.

What is the valuation date for a gift?

The effective date is typically the date of the gift.

This may be the date when legal ownership changes, when restrictions lapse, or when the donor has relinquished control. 

How long is an appraisal good for gift tax purposes?

Typically 6 months. 

An appraisal is tied to a specific effective date. Because market conditions and asset characteristics change, reports are not evergreen. If a transfer occurs on a different date, or if additional gifts are made later, a new or updated valuation may be required.

Who pays the gift tax, the donor or the recipient?

Under federal tax law, the donor (the person making the gift) is generally responsible for any gift tax due, not the recipient.

In most cases, no out-of-pocket tax is immediately paid because the value of the gift first applies against the donor’s:

• annual exclusion, and then
• lifetime estate and gift tax exemption.

Only after those amounts are exhausted would gift tax typically become payable.

The recipient usually does not owe income tax for receiving the gift. 

Who signs the gift tax return?

The donor is responsible for filing Form 709.

Advisors such as attorneys, CPAs, and appraisers may assist by providing valuations and supporting documentation, but they do not file the return on the taxpayer’s behalf.

Who hires the appraiser for a gift tax matter?

The engagement is usually made by the donor or their legal or tax advisor.

• Columbus 
• Cleveland 
• Cincinnati 
• Toledo 
• Akron 
• Dayton 
• Parma 
• Canton 
• Youngstown 
• Lorain 
• Hamilton 
• Springfield 
• Kettering 
• Euclid 
• Lakewood 
• Middletown 
• Mansfield 
• Cuyahoga Falls 
• Beavercreek Township 
• Fairfield 
• And More!