IRS qualified appraisals for
charitable contributions.

For real property, a qualified appraisal is required whenever the claimed deduction exceeds $5,000. There is no exception for real property like there is for publicly traded securities. Below $5,000 but above $500, Form 8283 Section A is still required, but without a formal appraisal. Similar items donated to one or more donees are aggregated to determine whether the $5,000 threshold is met.

For contributions valued between $5,001 and $500,000, you retain the appraisal in your records but do not attach it to the return. Form 8283 Section B is filed with the return instead. For any single item or group of similar items claimed at over $500,000, the complete qualified appraisal report must be physically attached to the tax return.

Form 8283 is the IRS form for reporting noncash charitable contributions exceeding $500. Section B is required when the deduction exceeds $5,000 and involves three signatures: the donor completes their portion, the appraiser signs Part IV (Declaration of Appraiser) certifying qualifications and independence, and the donee organization signs Part V acknowledging receipt of the property.

Only if they meet the IRS definition of a qualified appraiser under Treasury Regulation 1.170A-17. Many mortgage appraisers have never prepared a charitable contribution appraisal and may not be aware of the 13 required content elements, the penalty declaration, the fee restrictions, or the timing rules. Using an appraiser who does not meet the qualified appraiser definition can disqualify the entire deduction.

The valuation effective date of the appraisal must be no earlier than 60 days before the date of contribution and no later than the contribution date itself. If the appraisal is dated outside this window, it does not meet the qualified appraisal requirements and the deduction can be denied. This is why timing coordination between the donor, the appraiser, and the donee is essential.

Both the taxpayer and the appraiser face potential penalties. The taxpayer faces a 20% penalty for a substantial valuation misstatement (claimed value is 150% or more of the correct value) or 40% for a gross misstatement (200% or more). The appraiser faces penalties under IRC Section 6695A: the greater of $1,000 or 10% of the tax underpayment, capped at 125% of the appraisal fee. The appraiser's only defense is proving the concluded value was more likely than not the proper value.