Why Selecting Credentialed Appraisers Matters & What Qualifications to Ask About When Selecting an Appraiser

A recent tax court ruling reveals why it is important to hire a formally-trained, dedicated appraiser rather than an auction house specialist or dealer. For the article, see  https://procedurallytaxing.com/the-perils-of-a-discredited-appraisal-critical-insights-on-kollsman-v-commissioner/

The article also lists useful criteria for what to look for when selecting appraisers.

The Washington, DC-based Appraisal Foundation also weighed in supporting the court's ruling, stating:
“Consumers are the biggest beneficiaries of this ruling. Personal property assets will be better protected when a qualified and independent appraiser is retained to value one’s personal property assets,” said John Brenan, vice president of appraisal issues at The Appraisal Foundation. “This also means wealth managers and estate attorneys now have a greater fiduciary duty to their clients to fully understand appraiser qualification criteria and appraisal standards when vetting personal property appraisal experts.”

The ruling arises from the case of Estate of Kollsman vs. Commissioner. The Estate hired a premiere auction house to conduct an appraisal of the estate’s art collection. The U.S. Tax Court rejected the valuation of the auction house expert because of bias and a lack of objective evidence. The IRS retained the services of a personal property appraiser, who met the qualifications established by the AQB and completed an appraisal that was compliant with USPAP.

The IRS appraisal expert found two of the paintings were significantly undervalued. The court also found that the auction house expert had a conflict of interest as the appraiser in question also sought to represent the paintings at auction. The 9th Circuit Court took the case up on appeal and agreed with U.S. Tax Court opinion.

Selling Your Parents' Possessions is Harder than You Think

I've been getting a lot of queries recently from people who need to dispose of family possessions. Sadly, much of what I am asked to evaluate have only minimal decorative value. That is because lifestyles of younger people have changed and they are simply not so interested in antiques, Western or Asian, unless the pieces are really, really special. I am happy to look at things, for my minimun fee, and advise on where things can be sold. But it is important for people who contact me to understand they need to have realistic expectations and in most cases, sales will not be able to pay for care of elderly loved ones.

Much has been written on this issue lately, including this interesting, basic article, Sorry, Nobody Wants Your Parents' Stuff

Information Needed for Initial Consultation

If you have found me through my website and wish for me to assess your art, please tell me the following in your initial contact with me:

1. your full name and where you live

2. the reason you want your art assessed (do you want to sell it, are you curious about what it is, do you need an insurance or estate appraisal, etc)

3. the type of art you have and the number of pieces

4. where you acquired the art

5. If you want me to assess your art from photos, please inform me about the type and quality of the photos you have.
PLEASE DO NOT SEND LARGE JPG ATTACHMENTS WITH YOUR INITIAL EMAIL QUERIES.

Thank you!