Unlike other appraisal professionals, such as real estate appraisers, there is no state or federal licensing organization for appraisers of personal property. However, there is an accreditation process if the appraiser belongs to a professional appraisal organization, such as the American Society of Appraisers (ASA), the oldest and only major international appraisal organization that accredits members in every appraisal speciality (Personal Property, Gems and Jewelry, Machinery and Technical Services, Real Property, Business Valuation, and Appraisal Review & Management).
Professional appraisers are required by their accrediting organizations to take an initial USPAP 15-Hour course and passing an exam, and a required 7-Hour update course every two years, taught by an Appraisal Qualifications Board (AQB)-approved instructor, covering the latest requirements as part of maintaining their professional accreditation. Together with USPAP continuing education requirements, accredited appraisers are also required to meet Continuing Education requirements in order to reaccredit with their organization every five years.
In addition, if an appraisal report is required for an IRS return (e.g., donation, estate and gift tax appraisals), you will need to verify if you require an appraiser that adheres to The Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice(USPAP), which are recognized as the minimum standards by the IRS. USPAP requires that appraisers act as neutral, disinterested third parties who report the facts in an unbiased manner. Independence, impartiality, objectivity and competence are among the most important criteria to look for when you are seeking a personal property appraiser’s services, in order to ensure that the appraisal includes a credible opinion of value.
If you are filing Form 8283 IRS for noncash charitable contributions of $5,000 or more, the IRS requires a Qualified Appraisal prepared by a Qualified Appraiser, who:
- Demonstrates competency and regularly prepares appraisals in the type of property to be appraised,
- Has received a professional designation from a recognized professional appraisal organization,
- Meets minimum education and experience requirements, and
- Has not been prohibited from practicing by the IRS under section 330(c) of title 31 of the United States Code.
For donations with a concluded opinion of value of $20,000 or more, the appraisal must be attached to the tax return.
Ms. McClellan is up-to-date with her USPAP requirements, is considered a Qualified Appraiser and her appraisals meet the IRS’ requirements for a Qualified Appraisal.