Donated vehicles over $5,000 are required to have a written appraisal.
Atlanta, GA (PRWEB) January 28, 2013
The 2013 tax season is here and many people donate their vehicles to a charity to receive a tax deduction. Triple Net Group, America's leading independent appraisal company, is now offering charity car appraisals for vehicles worth more than $5,000.
Generally, if the claimed deduction for a vehicle is more than $5,000, the donor must submit an IRS qualified car appraisal issued by a licensed professional. In addition, they must attach an appraisal summary (Section B of Form 8283) to their tax return.
The appraisal must be made no more than 60 days before the vehicle is to be donated. Vehicles that are financed or that have liens cannot be donated.
Before donating a vehicle, donors should always research the charity with the Better Business Bureau and confirm that the charity is properly registered with the IRS.
Appraisals must comply with IRS publication 561, reports need to be USPAP compliant containing the appraiser's signature and certification. The appraiser is also required to sign IRS form 8283 and provide their tax identification number to the IRS. Appraisal reports must follow the comparable sale method which compares the donated property with several similar properties that have been sold.
Fair Market Value cannot be determined by simply looking up the NADA value or Kelly Blue Book nor can it exceed the price of a similarly listed private party sale, in addition FMV must be adjusted to account for the physical condition of the donated vehicle.
There are no requirements for a physical inspection, so, as long as the appraiser receives enough information to conduct a proper valuation, a sight unseen appraisal is acceptable by the IRS. Some appraisers offer on-site appraisals which are typically more expensive.
Donors must be careful when selecting their appraiser, the IRS describes a qualified appraiser as someone who "regularly prepares appraisals for he or she is paid" and who "demonstrated competency in valuating the property being appraised", essentially a full time professional that conducts appraisals regularly, a person who holds a professional license, a valid business license as well as a tax identification number.
To learn more about Charity Car Appraisals or to order a report please contact Antoine Rached at 1-877-667-2326 or by visiting http://charitycarappraiser.com.