Appraisals & Management of Personal Property
You can give non-cash gifts to friends, loved ones, and organizations. You can donate up to $5,000 to a charitable institution without a certified appraisal. Over $5,000 you need one. Over $20,000 the IRS has additional appraisal and photographic requirements, and requires a certified accredited appraisal, as spelled out in IRS pamphlet 8283.
Your appraisal over $5,000 is the amount you can deduct from your personal IRS 1040 income taxes. You can roll over this amount for three years. You, your appraiser, and the donee institution must sign an IRS Form 8283 agreeing to this amount of tax deduction for this gift. The appraiser is liable for penalties for a false statement. The taxpayer is liable for a % interest and penalties if the valuation is excessive.
he Internal Revenue Service (IRS) has provisions that allow you to give money annually to individuals without incurring a gift tax, known as the annual exclusion amount. Your estate planning attorney will guide you through this process.
Gifting personal property and/or cash through the IRS annual exclusion is a valuable way to express your love and support for family and friends while potentially reducing your estate tax liability. By adhering to the annual exclusion limits, using certified appraisals to meet IRS requirements where appropriate, and completing your gifts in a timely manner, you can make the most of this gifting strategy.
Mon – Sat: 9:30am – 4pm (CDT)
