Appraisals for CPA's & Financial Planners
OCappraiser.net 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
A key focus of OCappraiser.net’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 (
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
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
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 OCappraiser.net 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 -
· Fair Market Value
· Liquidation Valuations
· Purchase price allocation
Estate & Trusts
OCappraiser.net 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
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 OCappraiser.net 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 -
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
Recent announcements by the Internal Revenue Service state the
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
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:
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