IRS Form 706 Appraisal

What is an IRS Form 706 appraisal?

An IRS Form 706 appraisal is a qualified valuation of estate assets prepared for inclusion on Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return. It establishes the fair market value of non-cash, hard-to-value assets as of the date of death and must comply with IRS requirements under Treas. Reg. § 1.170A-17, including a detailed property description, valuation effective date, and the appraiser's signed declaration of qualifications.

When is an IRS Form 706 appraisal required?

Form 706 must be filed when the gross estate plus adjusted taxable gifts and specific exemptions exceeds the applicable basic exclusion amount, $13,990,000 for decedents dying in 2025 and $15,000,000 in 2026. Non-cash, hard-to-value assets reported on the return require a qualified appraisal. Estates below the threshold may still need appraisals for state taxes, IRS audits, or to elect portability of the unused exclusion.

What types of assets need an IRS Form 706 appraisal?

Any non-cash, hard-to-value asset included in the gross estate may require a qualified appraisal. AppraiseItNow covers:

• Personal property: jewelry, antiques, furniture, coins, collectibles, and household goods
• Artwork: paintings, prints, sculpture, photography, and mixed media
• Business interests: LLCs, S-corps, partnerships, fractional interests, and privately held stock
• Boats: sailboats, powerboats, yachts, jet skis, and personal watercraft
• Automobiles: cars, trucks, motorcycles, RVs, trailers, and classic vehicles

Who qualifies as an appraiser for IRS Form 706 purposes?

A qualified appraiser must have verifiable education and specific experience in the asset type being valued, hold credentials from recognized organizations such as ASA, ISA, or AAA, and include a signed declaration in the report confirming qualifications and awareness of penalties under IRC § 6695A. General credentials are not sufficient, the IRS scrutinizes type-specific expertise. All appraisals must adhere to USPAP standards.

Are AppraiseItNow's IRS Form 706 appraisals USPAP-compliant?

Yes. All appraisals are prepared in compliance with the Uniform Standards of Professional Appraisal Practice, which are mandatory for IRS-qualified valuations. USPAP compliance ensures consistent methodology, unbiased fair market value determinations, and IRS acceptance.

What information do you need to get started?

Providing complete information upfront helps ensure an accurate, IRS-compliant appraisal. Please gather:

• Asset descriptions, photos, and condition details
• Provenance, acquisition date, and cost basis where available
• Date of death or alternate valuation date
• Gross estate composition including adjusted taxable gifts
• Executor and decedent identification information

How long does an IRS Form 706 appraisal take?

Turnaround depends on asset type and complexity:

• Personal property: 7 to 10 days for most remote appraisals; 2 to 3 weeks for onsite inspections or larger collections; rush service available for same-day or next-day turnaround
• Artwork: 5 to 7 days for simple projects; 2 to 3 weeks for advanced assignments or large collections
• Automobiles: 3 to 5 days depending on complexity and number of assets
• Boats: 3 to 5 days for standard appraisals; marine surveys, when required, typically take 3 to 5 weeks to schedule and complete
• Business interests: 2 to 4 weeks for most engagements; rush service available for 7 to 10 day turnaround upon request

How much does an IRS Form 706 appraisal cost?

Fees vary depending on asset type, number of items, and the complexity of the valuation, visit our pricing page for a full breakdown. Rush service and onsite inspections may affect the final fee.

Can you appraise assets located anywhere in the US?

Yes. AppraiseItNow provides remote appraisals nationwide for all covered asset types. Onsite inspections can be arranged where required, and our appraiser network spans the country.

Will my appraisal be accepted by the IRS?

AppraiseItNow appraisals are prepared to meet IRS qualified appraisal standards, including proper valuation date, documented methodology, type-specific appraiser credentials, and a non-contingent fee declaration as required under IRC § 6695A. While no firm can guarantee acceptance in every case, following these standards significantly reduces the risk of challenge, audit adjustment, or accuracy-related penalties.

Do you buy, sell, or broker assets?

No. AppraiseItNow provides independent appraisals only. We have no financial interest in the assets we value, which is a core requirement for IRS-qualified appraisals and ensures unbiased, defensible opinions of fair market value.

What is the 2026 federal estate tax filing threshold?

The basic exclusion amount for Form 706 filing in 2026 is $15,000,000, adjusted for inflation. Estates whose gross value plus adjusted taxable gifts exceeds this threshold must file and obtain qualified appraisals for non-cash assets. Estates below the threshold may still benefit from appraisals for state tax purposes, portability elections, or potential IRS audits.

Can an estate use an alternate valuation date instead of the date of death?

Yes. Executors may elect to value estate assets as of the alternate valuation date, six months after the date of death, if doing so reduces both the gross estate value and the estate tax liability. The election applies to the entire estate, and assets sold before that date are valued as of their sale date. Supporting valuations reflecting the alternate date must be included with the Form 706 filing.

What penalties apply if estate assets are undervalued on Form 706?

If the appraised value is 65% or less of the IRS-determined actual value, a 20% accuracy-related penalty applies under IRC § 6662(b)(5). If the value falls to 40% or less, a 40% gross valuation misstatement penalty applies under § 6662(h). Relying on a qualified appraiser who meets IRS standards can support a penalty waiver if a dispute arises.

Is a Form 706 required just to elect portability of the estate tax exemption?

Yes. Even if no estate tax is owed, a timely filed Form 706 is required to elect portability of the deceased spouse's unused basic exclusion amount to the surviving spouse. Failing to file forfeits the portability election entirely, which can significantly reduce the surviving spouse's available exemption.

Does life insurance count toward the gross estate for Form 706 purposes?

Life insurance proceeds are included in the gross estate if the decedent held any incidents of ownership over the policy, such as the right to change beneficiaries or borrow against it. Retirement accounts like IRAs and 401(k)s are always included at their full value in the gross estate, regardless of beneficiary designations.