Qualified Appraisals and Qualified Appraisers

One cannot overstate the significance of valuations to the system of taxation in the U.S. or the complexity of the rules and technical requirements governing their proper performance. So seriously does the federal government take the issue and the billions of dollars at stake, that approximately 340 sections of the Internal Revenue Code require taxpayers to make fair market value determinations in order to self-report, and for the IRS to assess, tax liabilities. Many provisions of the law require appraisals to support reporting positions, and in many cases, Congress has enacted technical and specific requirements with which appraisers, tax professionals, and taxpayers must comply for an appraisal to be respected. For its part, the IRS has developed a veritable arsenal of sophisticated techniques for challenging the validity of valuations. An indispensable addition to the reference shelves of appraisers and tax professionals, this book was written by a uniquely well-qualified author team comprising two distinguished attorneys/tax professionals. An invaluable source of information, insight, and guidance, it identifies the law, analyzes the cases, discusses potential pitfalls, and provides reliable solutions to virtually every problem that can arise with the valuation process. What constitutes a qualified appraisal? Who is a qualified appraiser and how does one become qualified? How do appraisals for various types of properties, businesses, or other assets differ? Is it a good idea for tax professionals and appraisers to develop cross-disciplinary skills in valuation and tax, and how do the rules concerning expert witnesses bear on this question? These are just a few of the questions for which appraisers and tax professionals will find the answers they need in order to confidently comply with the law and produce work that meets the latest standards. Estates, gifts, charitable contributions, income taxes, and more are covered in detail, with expert guidance on the interpretation and application of relevant regulations. Since appraisers often are called upon to provide expert testimony in court, the authors explore various approaches, including hot-tubbing, an increasingly important technique that eliminates the appearance of bias and helps mitigate the adversarial nature of such cases. Numerous cases are dissected as they relate to existing appraisal laws. The ever-evolving regulations concerning qualified appraisers and qualified appraisals have given rise to much confusion, litigation, and no end of controversy with the tax authorities over the past decade. This book acknowledges the problems associated with appraisals and offers solutions to help professionals produce work the IRS and courts will accept now and in the years ahead.