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Welcome to another edition of the ACA
Appraiser's Update. This issue is loaded with
articles we think you'll find interesting.
We start with an article by Dave Maloney that will
provide some background and bring you up-to-date on the
status of the IRS's yet-to-be finalized new regulations
redefining the terms "qualified appraisal" and
"qualified appraiser." This should be of particular
interest for those of you doing appraisals for
donation purposes where the deduction claimed by the
taxpayer exceeds $5000.
Every other year The Appraisal Foundation
issues its revised edition of the Uniform Standards of
Professional Appraisal Practice (USPAP):
the nationally-accepted standard of practice for
appraisers. In this edition of the
Update, we are pleased to provide you with
two hard-hitting articles related to these changes
as well as to USPAP in general.
- First, Dave Maloney has prepared a narrated Power
Point presentation to help you better understand
the specific changes that The Appraisal Foundation's
Appraisal Standards Board (ASB) has made to the
2010-2011 edition of USPAP which become effective Jan.
1, 2010.
- Secondly, Bill Novotny succinctly explains
USPAP's appraisal process and how an understanding
of problem identification, scope of
work, competency and ethical obligations
will improve the credibility of the appraiser's work
product which, in turn, will help instill public
trust in the appraisal profession.
Note, too, that Dave Maloney's all-new edition
of his popular "how-to" book for the personal property
appraiser, "Appraising Personal Property:
Principles & Methodology - 3rd Ed." has just
been published and is now available for
purchase.This 550-page edition incorporates
many new features, topics and expanded
discussions.
Other interesting articles are included as well.
This month's USPAP Q&A addresses the dilemma facing
the appraiser when confronted with valuing counterfeit
money. And were you aware that completing IRS
Form 8283 might open you up to identity theft? Read the
below article to learn how to overcome the potential
problem.
Have a great Holiday!
 Sincerely,
Dave Maloney and Bill Novotny
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| IRS
Definitions of "Qualified Appraiser" and "Qualified
Appraisal" Continue to Evolve |
 From initial
Act to final regulations:
important appraisal-related issues continue to be
refined
New statutory
requirements relating to donation appraisals and
the individuals who do them were embedded within the
Pension Protection Act of 2006
(PPA). Subsequently, the IRS and Treasury
Department issued transitional guidance
to help explain the PPA's
intentions regarding such issues as definitions of
the terms "qualified appraiser" and "qualified
appraisal," record keeping requirements for taxpayers
claiming deductions for cash and noncash donations, new
appraiser and taxpayer penalties for substantial
overvaluations and changes regarding the donation of
clothing and household items in less than good
condition.
Incorporating input from the
public regarding its initial transitional guidance, in
2008 the IRS and Treasury Department issued Proposed
Regulations as the next step in the process leading to
the promulgation of Final Regulations. The Proposed
Regulations swept away some of the uncertainty regarding
what constitutes a qualified appraiser and a qualified
appraisal, yet some issues of concern remain. As of this
writing, the IRS continues to consider input from the
general public as it finalizes regulations that will
impact on appraisers who prepare donation
appraisals in which the taxpayer is claiming a deduction
in excess of $5000... more |
| USPAP Changes
for 2010-2011 |
| Easy way to
stay current with changes to USPAP
 Here is a free, 22-minute narrated
video overview of the changes recently incorporated by
the ASB into the new 2010-2011 edition of USPAP. The new
USPAP will be effective January 1, 2010 through December
31, 2011.
Some changes are minor, but some will have a
significant impact on your practice, such as the new
requirement to disclose any service you've provided
regarding the subject property over the past three
years. Did you sell it? Appraise it? Restore it? Own it?
If so, you have some new reporting requirements with
which to comply.
As authors and appraiser educators, we focus on
USPAP compliance, and our work as expert witnesses has
made us acutely aware of the importance of developing
and reporting appraisals that are USPAP
compliant.
Make sure you have a current copy of USPAP and that
you stay abreast of USPAP changes. Don't have a copy of
USPAP? Purchase one directly from The Appraisal
Foundation by going
here.
View USPAP changes video.
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| Report
Credibility Requires USPAP Compliance |
| Credibility requires that you apply USPAP
to your daily practice
 The degree to which your
client will feel comfortable relying on your report
boils down to whether or not your assignment results
are, simply put, worthy of belief. USPAP refers to this
as being "credible."
If credible, results can be comfortably relied upon
by the client and other intended users. Credible reports
also help enhance the public's trust in the appraisal
profession. Reports that are not credible
will have the opposite affect.
In this
article, AQB-Certified USPAP instructor Bill Novotny
briefly reviews the structure of USPAP, the appraisal
process, problem identification, scope of work,
competency and ethics. This overview puts these
important issues into perspective as they apply to the
appraiser's daily
practice. | |
| All-new 3rd
Edition of Unique How-to Book for the Personal Property
Appraiser |
 Certified personal property
appraiser David J. Maloney, Jr. has published the 3rd
edition of his highly-acclaimed book entitled
"Appraising Personal Property: Principles &
Methodology" (Appraisers Press, 550 pages, softcover, 8
1/2 x 11, $68.85 + S&H).
This is a
comprehensive, well-organized, practical and
fully-indexed course book and reference guide to
personal property appraising designed for the
experienced appraiser as well as the beginner.
This book is unique. There is
no other book or course of instruction that provides
such a thorough grounding in the fundamentals of
personal property appraising. This book has been written
by veteran appraisal course writer and instructor Dave
Maloney in strict conformance with the ethical and
performance requirements of USPAP. It teaches the
appraisal theory, principles, practices, standards and
methodology associated with developing credible
opinions, conclusions and analyses. It also teaches how
to report assignment results in a competent and
USPAP-compliant manner. And, as a fully-indexed
reference guide, you can quickly and easily find the
appraisal-related information you are seeking.
Highlights of the 3rd edition include:
- All-new 67-page plain-English Guide to USPAP
added. See Chapter 7!
- A new Chapter 13 dedicated to the legal aspects of
appraising complete with case studies has been added!
- Scores and scores of expanded discussions and new
topics!
- More sample wording and sample appraisals!
- Thoroughly updated with the changes that were
incorporated into the 2010-2011 USPAP and which take
effect January 1, 2010!
- 550 pages: every one updated, expanded, improved!
The new 3rd edition of "Appraising Personal
Property: Principles & Methodology" is outstanding!
I turned to the USPAP section right away. Appraisers,
both new and old, will love this section. You have
created an authoritative and exhaustive compendium of
appraisal theory. I have no doubt that your efforts will
be as highly regarded as Babcock's for the next few
decades. - PC
I am purchasing your book because I remember
from our conversation that your level of experience and
your approach to appraising is wonderful. I thank you in
advance for writing this definitive guide to appraising.
Congratulations on a highly recommended book. It sounds
like it should be a part of everyone's working library.
- GY I greatly look
forward to receiving improved appraisal reports since
any excuse of ignorance has been removed by your book. -
Government Appraisal Reviewer
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| Complete
ONLINE Appraisal Course |
 First-ever and only online
course for the personal property
appraiser
"We are proud to offer Dave Maloney's Complete
Online Course in Personal Property Appraising Featuring
USPAP," said ACA partner, Bill Novotny, an AQB Certified
National USPAP instructor. "The course makes use of the
latest in sophisticated university-level learning
management software to present a thorough and
professionally-designed learning experience complete
with reading assignments, Flash video reviews, a
detailed online glossary, self-assessed testing, and,
most importantly, course material that is thoroughly
integrated with USPAP - a first in the profession," he
continued.
"This course thoroughly covers the principles,
theory, methodology, standards and practices associated
with personal property appraising. It is the ultimate
learning experience for new appraisers as well as for
experienced appraisers who are looking to refine their
practice," said course reviewer and former USPAP
instructor Tom Field, GCA of Thomas R. Field American
Antiques and Folk Art.... read
all |
| USPAP Q &
A - Due Process of Law |
 What are the appraiser's USPAP
obligations regarding reporting counterfeit
coins?
Question: I am
a personal property appraiser that specializes in the
appraisal of coins and currency. I am required, by
federal law, to report United States counterfeit coins
and currency to the U.S. Secret Service. In reporting
these counterfeit coins and currency, I am also required
under federal law to provide them with the name and
contact information of my client. Would disclosing my
client's name under these circumstances be a
jurisdictional exception under USPAP?
Response: No. This issue does not
constitute a jurisdictional exception. The
Confidentiality section of the ETHICS RULE in USPAP
prohibits an appraiser from disclosing confidential
information, as defined in USPAP. However, it is not a
violation of USPAP to disclose the name of the
appraiser's client. This would only hold true if the
client's name qualified as confidential information, or
if the appraiser contractually agreed with the client
not to disclose the client's name.
Even if the appraiser agreed not to disclose
the name of the client, the Confidentiality section of
the ETHICS RULE permits the appraiser to disclose the
client's name to "such third parties as may be
authorized by due process of law." If federal law
mandates an appraiser to communicate confidential
information, the appraiser must comply with that
law.
Excerpted from USPAP Q&A, © The
Appraisal
Foundation |
| Form 8283
Source of Identity Theft? |
| Use EIN instead of SSN on 8283
 In its Proposed
Treasury Regulations providing guidance
concerning substantiation and reporting requirements for
cash and noncash charitable contributions under section
170 of the Internal Revenue Code, the IRS noted that
some commenters had suggested the elimination of
Form 8283's requirement for the personal property
appraiser to divulge his or her taxpayer identification
number in its Section B. This requirement has its
origins in Internal Revenue Regulations
§§1.170A-13(c)(3)(ii)(E) and 1.170A-13(c)(4)(ii)(I).
It was argued that many appraisers do
not have any taxpayer identification number other than
their social security number, the
disclosure of which might make the appraiser susceptible
to identity theft.
Despite that concern, in its Proposed
Treasury Regulations dated October 6, 2008 the IRS
continues to require that the taxpayer identification
number be included on Form 8283 because (pursuant to the
Procedure and Administration Regulations) an appraiser
can overcome this issue by obtaining an employer
identification number (EIN) even if the appraiser does
not have employees. EINs can be obtained by
completing Form SS-4
"Application for Employer Identification Number." See Pub. 1635
"Understanding Your Employer Identification Number" for
related information. (By the way, if an appraiser
is employed by a firm, the firm's employer
identification number should be
used.)
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