Appraisals for CPA's &  Financial Planners works closely with accounting professionals such as  CPA’s and  Financial Planners to provide appraisal reports that comply with IRS valuation guidelines and the client is assured of unexpected future tax liability due to the quality and amrket support of the appraised real estate.    


Our company clearly understands that the accounting industry requires reliable and accurate Fair Market Value conclusions.  Nearly all valuation assignments that we develop  for accountants and financial planners concern IRS reporting and tax issues. 


A key focus of’s valuation practice involves valuation assignments for accounting industry clients.  Many referrrals come from the accountants of inviduals needing a  Date of  Death (DOD) appraisal or Estate / Trust related Internal Revenue Service (IRS) tax reporting issues. 


Internal Revenue Service Compliance


We closely follow recent events and changes in accounting and financial reporting regulations.  With that in mind, its important that appraisers completing Estate, Trust and Tax related valuation assignments have a thorough understanding of IRS appraisal requirements and accepted practices as well recent regulatory changes. 


Our accounting industry clients depend on us to offer the most cost effective report format and service to their clients.   More importantly,  our clients have  the confidence  that the value opinion is accurate and complies with IRS appraisal requirements.  The IRS can and will reject a poor quality appraisal report during an audit years after the tax year filing.   So when making a decision on an appraiser for IRS tax  reporting,  please choose an appraiser with IRS valuation experience.      


Our firm has the understanding of  real estate valuation issues that play a critical role in limiting your client to unexpected tax liabilities.  The valuation services displayed below are assignments that provides for the accounting industry.  Some assignments involve consultation with other professionals and/or collaboration with the CPA or  Financial Planner. 


·         Estates & Trusts

·         Date of Death (DOD)

·         Retrospective Appraisals

·         Family Limited Partnerships

·         Partial Interest Valuation

·         Minority Interest Discounts

·         Gift Tax Valuation  -  IRS Form 8283

·         Fair Market Value

·        Liquidation Valuations

·         Purchase price allocation


Estate & Trusts has the capability to appraise mulitiple property estate and Real Estate Trusts Portfolios.  We have saved clients thousands of dollars and delivered a superior quality work product by direct engagement with our office.  Some of our efficiency and cost saving methods are described below.  


Mixed-use residential and commercial estate portfolios -  We have the capability to appraise a mixed resdeintial and commercial property portfolio at prices usally lower than quoted from the large national commercial real estate firms.    


Date of Death Appraisals


The most common type of estate related assignments referred to our office by CPA’s and other financial professionals is the Date of Death Appraisal (DOD).  These assignments  are common in probate court,  single and multiple property  portfolios.  Date of Death appraisals can include more than one effective value date, usually the date of  death and six months after the DOD.  The estate tax liability can be filed based on the date with the lowest tax liability. 


For Date of Death assignments,  Retrospective appraisals are common.  A Retrospective appraisal, is the valuation of a property as of an effective date in the past.  Retrospective appraisals can be difficult assignments because the appraiser can only consider and use sale comparables that would be available for analysis on the past effective date.  There is  specific criteria that must be followed for a credible  opinion of value.  No all appraisers have the market data or experience to develop a retrospective value conclusion more than one year or so in the past. 


Our office completes numerous retrospective value appraisals for estate tax reporting and legal / property disputes.  Our in-house database and ability to collect old and very dated sales and market data in most of Southern  California.   Our office sales and market data dates back  prior to 1990 and have additional sources that can be accessed for data prior to 1990.  has probably completed more  retrospective appraisals than most appraisal firms.   In the past, several large federal agencies  contracted our firm to value various properties at a current date and a second retrospective value date that was up to ten years prior. 


Family Limited Partnerships


Valuing Family Limited Partnerships and similar legal entities with primarily real estate assets are assignments that our office completes for accountants and financial planners and their clients.  The valuation of partnerships is a specialized appraisal assignment that includes value interests other than real estate.  Assets in a partnership can include real estate,  cash and securities and ownership interests in other companies or partnerships.  The presence of  non real estate assets and liabilities makes the assignment more  complicated to complete.  Real estate appraisers often collaborate with business appraisers to value the assets separately. 


Partial Interest Valuation


Our office has the capability to complete Partial Interest Valuations.  Most assignments relate to the pro-rata share interest in Family Limited Partnerships or  Common Tenancies.  This type of valuation is relatively straight forward analysis after the 100% Ownership Interest is estimated.      


Minority Interest Discounts


Estimating a market discount for a minority interest in a partnership is often completed in conjunction with the 100% interest valuation of the partnership and calculating the pro rata share of all ownership interests.  The final analysis that is commonly requested is to provide a supported market discount for any minority interests.  This requires a specialized analysis of the components that build-up the total minority discount.  Market data supporting minority discount rates are rare but do exist.  There are also secondary market data sources that contain partnership transactions and corresponding discounts. 


Please contact if  you would like to discuss a specific partnership and would like our company to submit a proposal to value a partnership or a client’s pro rata interest in a partnership. 


Gift Tax Valuation  -  IRS Form 8283


The Fair Market Value of a real estate property gifted to another person or non-cash charitable contribution needs to be properly established by a qualified appraiser, preferably a MAI designated appraiser.  A market supported appraisal and signed IRS Form 8026 is the best assurance that a future audit will not subject your client, the taxpayer,  an unexpected tax payment and penalties because the original tax filing contained poor valuation on the real estate. 


Recent announcements by the Internal Revenue Service state the IRS will begin prosecuting and fining appraisers that submit inaccurate appraisals for tax filings.   In essence, appraisal reports submitted with tax filings will be scrutinized for accuracy.  IRS appraisal reviewers and outside fee appraisers will be contracted to review appraisals that appear to be inaccurate.  Based on recent information made public by the IRS we don’t recommend that tax filings requiring the valuation of real estate include an appraisal completed and signed by a qualified appraiser.  Although an MAI appraisal is not required by all clients,  the MAI carries a lot of weight and creditability from major users of appraisal services.  


Fair Market Value


The Internal Revenue Service uses a specific definition of market value that is different from the market value definition used by FNMA, banks and others in the mortgage industry,  The difference  in the market value definitions are not great and often result in the same value conclusion.  However,  there is enough variation that if a mortgage loan appraiser is not familiar with those specific differences, the concluded value could be inaccurate and rejected by the IRS.  Display below is the Fair Market Value definition required for IRS reporting.  If an appraiser is not familiar with the subtle variation of Fair Market Value  versus Market Value commonly used in mortgage financing appraisals, it is probably a good idea to contact another appraiser for the assignment..   




Market value is an appraisal term (definition & type) while fair value is an accounting term and can be referenced under FASB statements No. 13, 15, 61 & 121.  Revenue Ruling 59-60 provides a working definition of fair market value: 2.2 Section 20.2031-1( of the Estate Tax Regulations (section 81.10 of the Estate Tax Regulations 105) and section 25.2512-1 of the Gift Tax Regulations (section 86.19 of Gift Tax Regulations 108) define fair market value, in effect, as:


  1. the price at which the property would change hands.


  1. between a willing buyer.


  1. and a willing seller.


  1. when the former is not under any compulsion to buy and the latter is not under any compulsion to sell.


  1. both parties having reasonable knowledge of the relevant facts.


  1. the hypothetical buyer and seller are assumed to be able.


  1. as well as willing, to trade.


  1. to be well-informed about the property.


All of definitions of value are based on certain assumptions. Those assumptions vary.   Using different definitions of value can affect the value opinion.  Its imperative that the client and appraiser discuss the definition of value to be used based on the intended use.  Miscommunication on this issue can result in an inaccurate value opinion and affect the probability that a future audit can result in an unexpected tax liability.  


The bottom line, an appraisal not in compliance with IRS guidelines or using an appraiser that is not current on recent changes in IRS appraisal requirements risks that the appraisal will be rejected and subject’s the taxpayer to future tax liability.