Real Estate Appraisal Services for:  

709 Gift Tax, IRS 706 Death Tax, Trust Administration, Charitable Contributions and Probate 

Residential - Real Estate Appraisals in Northwest Chicago and the North and Northwest Chicago Suburban Areas

We are a leading provider of real estate appraisal services for estate planning tax compliant valuations of residential real estate in Northwest Chicago and the North and Northwest Chicago Suburban Areas.

We provide Residential appraisal services for your estate, probate & wills, living trusts, financial planning, real estate transactions, and bankruptcy. Individuals that utilize our appraisal services include estate tax attorneys, CPA tax accountants, family trusts, financial planning professionals, certified financial planners CFP, estate executors, and bank trust administrators. Some of the reasons why you may need real estate appraisers include settling an estate, distribution of assets, determination of asset values for tax filling, planning, tax appeal, estate tax, gift tax, and setting up an estate plan with a revocable or charitable living trust.

New proposed income tax regulations (26 CFR part 1) require a taxpayers to obtain a qualified appraisal and attach it to the tax return in which the deduction is claimed. Reporting and substantiation requirements for tax returns include forms 1040(E), 1041, 706 or 709. The IRS proposed amendment requires qualified appraisals by a qualified appraiser. As a Designated appraiser of the NAIFA, I meet the IRS requirements for a qualified appraiser. The IRS requires well documented appraisals prepared by real estate appraisers experienced with IRS Real Property Valuation Guidelines.

Treasury Regulations Requirements and Choosing an Appraiser

For an appraisal prepared on or after August 17, 2006 Section 1.170A-13(c). When choosing a real estate appraiser for estate planning, trust administration, probate and wills, and IRS estate tax return filing you should find a residential, industrial, apartment, or commercial real estate appraiser experienced in IRS Real Property Valuation Guidelines. Treasury Regulation Section 20.2031-1(b) requires the appraiser to follow certain guide lines when preparing qualified real estate appraisals for estate tax returns. This includes  gifts, Casualties & Disasters, charitable trusts or organizations, and other tax return filing purposes. Moreover, real estate appraisers must be qualified under regulations Section 1.170A-13(c)(5) and should be able to qualify as an expert witness. Additionally, information that should be stated in the appraisal is set forth in IRS Rev. Proc. 66-49, 1966-2 C.B. 1257. For example, utilizing the correct definition of "Market Value", "Use Value", "Fair Market Value", "Intrinsic Value", or "Investment Value" means the difference between a disputed appraisal and one that is prepared correctly. Anselmo v. Commissioner, the Court states there is no distinction between the measure of "Fair Market Value" for estate and gift tax purposes and charitable contributions. In addition, Rev. Proc. 79-24, 1979-1 C.B. 565 indicates guide lines for the "Market Approach" also known as the "Market Comparison Approach", better known in appraising for federally related transactions as the "Sales Comparison Approach". Similarly, Rev. Rul. 68-609, 1968 C.B. 327 provides the general approach, methods and factors outlined in Rev. Rul. 59-60, 1959-1 C.B. 237.

It is also wise to avoid submitting a residential appraisal with your federal estate tax return that is more than two years old and does not meet other specific IRS tax filing guide lines. Additionally, when reviewing an estate appraisal, the IRS looks at the accreditation of the real estate appraiser, the rationale of the "Fair Market Value" opinion, the validity of the comparable research, and the overall professionalism of the report. In preparing an appraisal for estate planning or tax filing purposes the IRS requires the appraiser to follow specific appraisal guidelines and IRS Real Property Valuation Guidelines.

For outright and planned gifts of Illinois real estate in a charitable remainder trust, establishing "Fair Market Value" (FMV) is essential for determining the charitable deduction and for measuring the lifetime income interest of planned gifts. All donations of $5,000 or more require a qualified appraisal. Section 155 of the Deficit Reduction Act of 1984 requires a qualified appraisal for certain contributions of property made after December 31, 1984. A helpful resource is IRS publication 561 Determining the Value of Donated Property, which describes the protocol in detail, including the procedures for real estate appraisers, content of appraisals, etc. The donor must complete IRS form 8283 and file this form with his/her tax return for the tax year in which the gift of real estate is claimed. A copy of the qualified appraisal it typically attached to form 8283 for estate tax filing, which is also signed by a real estate appraiser.

Settling an estate usually requires an appraiser to establish an opinion of "Fair Market Value" (FMV) for the residential home with a Residential Real Estate Appraisal. Often, the date of death (effective date of the appraisal) differs from the date of the inspection. I am familiar with the procedures and requirements necessary to perform a retrospective appraisal with an effective date and a "Fair Market Value" opinion matching the date of death. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.

Typically, our residential appraisal fee for Date of Death appraisals, trusts or a retrospective real estate appraisal require more research than a typical appraisal assignment and therefore requires a fee quote.