Charitable Donation Appraisals in Los Angeles

Form 8283 concerns noncash charitable contributions

The IRS instructions describe Section B for deductions over $5,000 per item or group of similar items, subject to the stated exceptions, and a written qualified appraisal for items reportable there. Form 8283 is an appraisal summary, not the appraisal itself. The amount of a deduction and an appraised value are not automatically the same.

Describe the actual interest and contribution arrangement

For a vacant Chatsworth parcel, supply title information, the AIN, available plans, and the contemplated transfer terms. If restrictions, an easement, debt, or a partial interest are involved, disclose them before scope review. Confirm the specialized scope with Kevin before proceeding because a whole-parcel appraisal is not automatically a conservation-easement appraisal.

Timing belongs to the charitable assignment

Treasury Regulation section 1.170A-17(a)(4) addresses the signature date, starting no earlier than 60 days before contribution and ending at the applicable return deadline. Subsection (a)(8) addresses receipt, including extensions and the amended-return provision. Subsection (a)(5) addresses the valuation date. Your tax adviser confirms the contribution facts and applicable deadline; the timing rule does not guarantee deduction eligibility.

IRS Requirements for Charitable Contribution Appraisals

Form 8283 Requirements

Noncash charitable contributions exceeding $500 require donors to attach IRS Form 8283 to their tax returns. For contributions of real property exceeding $5,000, Section B of Form 8283 must be completed, requiring information from a qualified appraisal and signatures from both the appraiser and the donee organization.

Our appraisals are prepared specifically to satisfy Form 8283 requirements. We include all required information in our reports and provide the appraiser acknowledgment that Form 8283 requires. We work with donors and their tax advisors to ensure that all documentation requirements are properly fulfilled.

Outright Donations

The simplest charitable gift is an outright transfer of real property to a qualified charitable organization. The donor is entitled to deduct the fair market value of the property (subject to AGI limitations), avoids capital gains tax on appreciation, and removes the property from their taxable estate. Our appraisals establish the fair market value that supports the charitable deduction.

Bargain Sales

In a bargain sale, the donor sells property to a charity for less than fair market value. The difference between the fair market value and the sales price constitutes a charitable contribution. Accurate appraisal is essential to properly determine the contribution amount and allocate basis between the sale and gift portions of the transaction.

Charitable Remainder Trusts

Charitable remainder trusts allow donors to receive income from property during their lifetime, with the remainder passing to charity. The present value of the charitable remainder interest is deductible. Our appraisals establish the property value that underlies the actuarial calculations determining the deductible amount.

Conservation Easements

Conservation easement donations, which restrict development rights on property while allowing continued ownership, are subject to particularly rigorous IRS scrutiny. These appraisals require specialized expertise in valuing the before and after conditions and understanding the unique rules governing conservation easement valuations.

Penalty Protection

Substantial valuation misstatements—claiming a value 150% or more of the correct value—can result in accuracy-related penalties of 20% of the tax underpayment. Gross valuation misstatements at 200% or more increase the penalty to 40%. A qualified appraisal from an independent appraiser provides protection against these penalties by demonstrating good faith reliance on professional valuation advice.

Our appraisals are prepared with the understanding that they may be subject to IRS examination. We document our methodology thoroughly, support our comparable selections with clear reasoning, and develop value conclusions that are defensible under scrutiny. This level of professional rigor protects donors' interests.

Working with Charitable Planning Teams

Charitable giving often involves coordination among donors, their CPAs, attorneys, financial advisors, and the charitable organizations. We work collaboratively with all parties to ensure our appraisals meet the specific needs of the contemplated transaction. We're available to discuss valuation issues, answer questions, and provide additional information as needed.

Planning a Charitable Real Estate Gift?

Contact us today to discuss your charitable donation appraisal needs.

What to gather before calling

You do not need every document to start. Use the Los Angeles County Assessor mapping guidance to identify the AIN and reconcile address aliases. The Assessor's maps are not surveys or legal descriptions, and an assessed value is not an appraisal conclusion.

From the first call to the report

1. Discuss the property, interest, and proposed charitable contribution.
2. Your tax adviser confirms applicable instructions; Kevin reviews assignment suitability.
3. Agree on date, use, scope, fee, and delivery estimate and provide records and access.
4. Kevin develops the agreed commercial real estate valuation.
5. Your adviser reviews the report and any applicable form documentation.