Although I also do other types of appraisals, I am most frequently asked to complete appraisal reports for insurance, charitable institution donations, and estate settlements. Each has different requirements for written reports, which I describe in general terms below.
INSURANCE APPRAISALS
*header/footer on every page with: client name, appraiser
name & contact info, appraisal purpose, valuation system used,
effective date, pagination (include # of photos)
*cover page
*table of contents
*valuation summary
*disclaimers, limiting conditions, assumptions
(authenticity), hypothetical & extraordinary assumptions
*appraiser's certification (include compliance with USPAP,
fee structure)
*appraiser's CV & qualifications for appraising the
type of art in the report
*client name
*clearly defined scope of work -- includes the following:
-description of the appraisal assignment
-purpose of appraisal: insurance
-purpose of appraisal: insurance
-type of report (appraisal report or restricted appraisal
report)
-intended users (client & insurance co)
-valuation type: Retail Replacement Value
-definition of value & source
-market approach: comparative (state why used)
-marketplace: retail
-market analysis
-date & place of inspection
-effective date (same)
-date of report
*inventory of objects noting locations (if appropriate)
*description of objects, noting when Fine Art Breakable,
Sterling Silver, Fine Art, nationality, artist, type of art, date, size,
relevant inscription & marks, boxes -for Asian objects &
scrolls-, material, technique, condition, prior publications, artists' bio,
relevant references
*provenance (optional but useful)
*discuss authenticity if relevant
*include comparables (optional): if under $100 each--group
together, $5000 & above--comps preferred, groups over $10,000--comps
preferred
*Firm Valuation for each object
*photographs
*SIGNATURE
IRS DONATION APPRAISALS
*Need appraisal for donations over $5000, over $50,000 IRS art committee reviews appraisal report, over $500—taxpayer must submit IRS form 8283 (no appraisal needed)
*note: client can deduct cost of appraisal fees from income
*Need appraisal for donations over $5000, over $50,000 IRS art committee reviews appraisal report, over $500—taxpayer must submit IRS form 8283 (no appraisal needed)
*note: client can deduct cost of appraisal fees from income
*header/footer with: client name, appraiser name & contact info, appraisal purpose, valuation system used, effective date, pagination (include # of photos)
*cover page
*table of contents
*valuation summary
*disclaimers, limiting conditions, assumptions (authenticity), hypothetical & extraordinary assumptions
*appraiser's certification (include compliance w/USPAP, fee structure, disinterest, acknowledgment that misrepresentation will incur penalties, & appraiser not disqualified by IRS)
*appraiser's CV & qualifications for appraising the type of art in the report
*client name
-type of report: appraisal report (the most comprehensive type)
-intended users (generally client & accountant & donor organization)
-valuation type: Fair Market Value
-definition of value & source
-market approach: comparative market analysis (state why used)
-marketplace: auction and/or retail
-market analysis
-date & place of inspection
-effective date: date of donation
-donee organization and appropriateness of object to that organization
-date of report (cannot be more than 60 days prior to donation)
*object list
*inventory & description of objects (noting nationality, artist, type of art, date, size, relevant inscriptions & marks, boxes -for Asian objects & scrolls-, medium, format, technique, condition
*artist bio, references, other notes
*provenance & price paid
*discuss authenticity if relevant
*Firm Valuation for each object
*photographs
*ownership interest
*COMPARABLES REQUIRED with discussion for: single items & groups over $5000
*SIGNATURE & Tax ID#
*Completion of appraiser's section of IRS form 8283
*cover page
*table of contents
*valuation summary
*disclaimers, limiting conditions, assumptions (authenticity), hypothetical & extraordinary assumptions
*appraiser's certification (include compliance w/USPAP, fee structure, disinterest, acknowledgment that misrepresentation will incur penalties, & appraiser not disqualified by IRS)
*appraiser's CV & qualifications for appraising the type of art in the report
*client name
*clearly defined scope of work -- includes the following:
-description of the appraisal assignment
-purpose of appraisal: donation-type of report: appraisal report (the most comprehensive type)
-intended users (generally client & accountant & donor organization)
-valuation type: Fair Market Value
-definition of value & source
-market approach: comparative market analysis (state why used)
-marketplace: auction and/or retail
-market analysis
-date & place of inspection
-effective date: date of donation
-donee organization and appropriateness of object to that organization
-date of report (cannot be more than 60 days prior to donation)
*object list
*inventory & description of objects (noting nationality, artist, type of art, date, size, relevant inscriptions & marks, boxes -for Asian objects & scrolls-, medium, format, technique, condition
*artist bio, references, other notes
*provenance & price paid
*discuss authenticity if relevant
*Firm Valuation for each object
*photographs
*ownership interest
*COMPARABLES REQUIRED with discussion for: single items & groups over $5000
*SIGNATURE & Tax ID#
*Completion of appraiser's section of IRS form 8283
IRS ESTATE APPRAISALS
*single items over $3000 appraisal required; group of like items over $10,000 appraisal required, over $20,000 IRS art committee reviews appraisal report
*note: client can deduct cost of appraisal fees from income
*single items over $3000 appraisal required; group of like items over $10,000 appraisal required, over $20,000 IRS art committee reviews appraisal report
*note: client can deduct cost of appraisal fees from income
*header/footer on every page with: client name, appraiser's name & contact info, appraisal purpose, valuation system used, effective date, pagination (include # of photos)
*Cover page
*table of contents
*valuation summary
*limiting conditions, disclaimers, assumptions (authenticity), hypothetical & extraordinary assumptions
*appraiser's certification (include compliance with USPAP, fee structure, disinterest, acknowledgment that misrepresentation will result in penalties, & appraiser not disqualified by IRS)
*Appraiser's CV & qualifications for appraising the type of art in the report
*client name
-type of report: appraisal report (the most comprehensive type)
-intended users (generally client, accountant, estate executor)
-valuation type: Fair Market Value (if using auction results, include buyer's premium)
-definition of value & source
-market approach: comparative market analysis (state why used)
-marketplace: auction or retail
-effective date: date of death or 6 months later
-date & place of inspection
-report date
-market analysis
*Inventory & description of objects (noting nationality, artist, object type, medium, format, technique, date, size, relevant inscriptions & marks, boxes-for Asian paintings and object-, ownership interest
*references, artist bio, other notes
*provenance & price paid
*discuss authenticity if relevant
*COMPARABLES REQUIRED with discussion for: single items over $3000, groups of like items over $10,000
*photographs (mandatory for over $20,000)
*Firm Valuation for each object *SIGNATURE &Tax ID#
*Completion of appraiser's section of IRS form 8283
*Cover page
*table of contents
*valuation summary
*limiting conditions, disclaimers, assumptions (authenticity), hypothetical & extraordinary assumptions
*appraiser's certification (include compliance with USPAP, fee structure, disinterest, acknowledgment that misrepresentation will result in penalties, & appraiser not disqualified by IRS)
*Appraiser's CV & qualifications for appraising the type of art in the report
*client name
*clearly defined scope of work -- includes the following:
-description of the appraisal assignment
-purpose of appraisal: estate valuation-type of report: appraisal report (the most comprehensive type)
-intended users (generally client, accountant, estate executor)
-valuation type: Fair Market Value (if using auction results, include buyer's premium)
-definition of value & source
-market approach: comparative market analysis (state why used)
-marketplace: auction or retail
-effective date: date of death or 6 months later
-date & place of inspection
-report date
-market analysis
*Inventory & description of objects (noting nationality, artist, object type, medium, format, technique, date, size, relevant inscriptions & marks, boxes-for Asian paintings and object-, ownership interest
*references, artist bio, other notes
*provenance & price paid
*discuss authenticity if relevant
*COMPARABLES REQUIRED with discussion for: single items over $3000, groups of like items over $10,000
*photographs (mandatory for over $20,000)
*Firm Valuation for each object *SIGNATURE &Tax ID#
*Completion of appraiser's section of IRS form 8283