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Your appraiser will also use knowledge of recent sales of comparable works to determine the artwork’s value. You will be provided with a comprehensive report including a description of the work, the valuation method used and the final appraised value. You can read more about estate tax appraisals here.
Further, appraisalreports must follow the latest version even if the appraiser has NOT taken the latest course. Publication 561 includes four ways to determine FMV: cost of the donated property; selling price of the donated property; sales of comparable properties; replacement value.
Isn’t it a great world we live in, where all the knowledge of the Ages… all of it… is right there at end of your fingertips? Having a legal and professional AppraisalReport is required if you are submitting the information to the IRS, or if the report will be viewed by an attorney or judge. First off, I applaud you.
SAFEGUARDING YOUR COLLECTION A full appraisalreport can be shared with specified entities, such as an insurance company, a lawyer or legal firm, accountant or anyone specified in the contract. It is the type of appraisalreport we most commonly provide for our clients. It is for your information only.
Fair Market Value is used when a collector is settling an estate, needing equitable distribution, or making a charitabledonation. If a work is in pristine condition, especially for its age, it would have a higher value than a work with a lot of craquelure issues or paint loss. Do these organizations require recertification?
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