Estate planning is an important step for people to take in order for their loved ones to properly distribute their assets when that time comes. Part of an estate can often be items of value that family members would like to donate to a charitable cause. In order to make such a donation, it is necessary to go through the process of getting a charitable donation appraisal Minnesota. This involves having an appraiser look at the items and assign a cash value to the items for the purposes of the donation. There are certain questions that people need to be prepared to answer, and a few steps in the process that will help things go smoothly.
First off, any collection of items that has a total value of over five thousand dollars is subject to needing a charitable donation appraisal Minnesota. In addition, any single item that has a value of at least five hundred dollars should have an appraisal done. Qualified appraisers will fill out the necessary IRS forms to ensure the donation is properly reported. As the value of the items increases, the reporting requirements become more lengthy. This is where the services of an excellent estate distribution and appraisal company can come in handy.
Fair market value is used to determine the amount of money assigned to each item. This value represents what an item would sell for at an auction, estate sale or wherever the appropriate market is for the item. The value uses the current condition of the item as the basis for the final dollar amount. Appraisers will independently arrive at the value for the various items through a research and information gathering process, but it is good for family members to do some research on their own to compare numbers.
Costs for moving or transporting items are not included in the fair market value appraisal, and the appraisal should be done no more than sixty days prior to the donation being made to ensure the most accurate values are obtained. The cost of the appraisal may be tax deductible, but a tax accountant should be consulted to make a final determination of this.
