‘Tis the season: Real estate gifts must be appraised
If your holiday list this year includes gifts of real estate, the gifts must be appraised and made at their current fair market value per the IRS. A detailed appraisal by a professional appraiser, who is thoroughly trained in the application of appraisal principles and theory, is necessary.
In some instances the opinions of equally qualified appraisers may carry unequal weight, such as when one appraiser has a better knowledge of local conditions. The appraisal report must contain a complete description of the property, such as street address, legal description, and lot and block number, as well as physical features, condition, and dimensions. The use to which the property is put, zoning and permitted uses, and its potential use for other higher and better uses are also relevant).
If you’re gifting real estate and want to ensure you are doing it according to IRS guidelines, please contact a ShindelRock tax professional.