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CHARITY DONATION APPRAISAL PROGRAM - FAQs
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- What Is The Charity Donation Appraisal Service?
- How Is The Charity Donation Appraisal Service Used?
- When Donating To A Nationally Recognized Charity...Is An Appraisal Necessary?
- Will The IRS Accept The Charity's Stated Value...Without An Appraisal?
- Why Can't I Simply Submit A Book/Guide Value As Proof?
- Can Any Vehicle Be Donated Using Its Value As A Tax Deduction?
- When Should The Donated Vehicle Be Appraised?
- I've Already Donated A Vehicle...Can It Still Be Appraised?
- Will The IRS Accept Your Appraisal?
- How Is The Appraised Value Determined?
- What Is "Book" Value?
- What Is Comparable Or "Comp" Value?
- Is The Appraisal Certified?
- Is The Appraisal Guaranteed?
- Are Photographs Required?
- Don't You Need To See The Vehicle...To Appraise It?
- Can A Donation Appraisal Be Performed By Sending Information Via The Internet?
#1 What Is The Charity Donation Appraisal Service? The automotive appraisal services® Charity Donation Appraisal
Service is all that's needed to successfully prove to the IRS that a vehicle donated to a recognized charity is
worth a specific amount. The appraisal can then be used for a legitimate tax deduction. The aas Charity Donation Appraisal Service is an IRS recognized...accepted...approved vehicle
appraisal donation service. IRS # 45-2423019.
#2 How Is The Charity Donation Appraisal Used?The automotive appraisal
services® Charity Donation appraisal is used as a support document
to substantiate a claim of a donated vehicle's fair market value. The IRS requires a professional-certified appraised
value be established when donating a vehicle to a legitimate charity. The aas
appraisal meets that requirement. It may or may not be necessary to submit the actual appraisal with your income
tax documents. It should be kept to offer proof, if required. However, the necessary IRS form,
signed by the appraiser, MUST be submitted.
#3 When Donating To A Nationally Recognized Charity...Is An Appraisal Necessary?YES!
The IRS requires that any vehicle with a value over $5,000, donated to any
charity, must have a certified appraisal performed by a third party, professional-certified
appraiser. All appropriate IRS-required documents must be signed by the appraiser, clearly indicating the appraiser's
identifying number. A professional-certified, up-to-date appraisal is the best proof of your vehicle's true value.
No longer will the IRS simply rely on a charity's statement of value written on their stationary. Nor will they accept
the opinion of the vehicle's owner. In most cases, the IRS now requires a professional-certified appraisal performed
by a recognized vehicle appraisal service. If the vehicle's estimated value is less than $5,000, an appraisal is not
mandatory, but it's highly recemmended. Just because an appraisal is not required, doesn't mean the IRS will not challenge
the value. They often do. Donating a vehicle to charity will turn on a "RED LIGHT" that just might
trigger an audit. If the vehicle's value was determined merely by using a book value such a Kelley Blue Book, NADA Guide,
Edmunds Used Car Guide or any similar publication, (which by the way they will not accept), or a value randomly
assigned by the receiving charity, the IRS will challenge it. You will then have to prove your stated value. Remember;
this audit can happen several years after you've donated the vehicle making your task that much harder. An aas professional-certified appraisal will successfully demonstrate the vehicle's true
value, eliminating any IRS auditor's inquiry.
#4 Will The IRS Accept The Charity's Stated Value...Without An Appraisal?In some instances YES...in
most NO, and NEVER if the vehicle in question is worth more than $5,000.
The more important question should be...Do You Want To Risk That? An improperly stated and/or documented value
may result in an IRS tax audit. There are several factors that need to be considered before the IRS will accept a charity's
stated value. Some of which are: - The Receiving Charity's Acceptance As A Legitimate Charity
- A Thorough...In-Depth
Description Of The Vehicle
- The Vehicle's Fair Market Value
- Geographically Correct Comparable Values
- Plus...Many
More
With the rise in popularity of using a vehicle donation to lower an income tax bill, the IRS will often
flag such a return for audit. It's like turning on a Red Light. When the vehicle's donation
value is established using an aas professional-certified appraisal, that
light is quickly turned off.
#5 Why Can't I Simply Supply A Book/Guide Value As Proof?The IRS will not accept a generic guide
book for your vehicle's actual fair market value. The reason is that those publications are guides only. Your
vehicle will most likely be different. With the rise in popularity of using a vehicle donations to lower income
tax bills, the IRS will often flag such a return for audit. It's like turning on a Red Light.
When the vehicle's donation value is established using a professional-certified appraisal, that light is quickly turned off. For
example, if your vehicle is in perfect condition, it might easily sell for more than the "book/guide"
value, due to its low mileage and basic overall condition. An aas appraisal
will successfully demonstrate that.
#6 Can Any Vehicle Be Donated Using Its Value As A Tax Deduction?
Most any. Basically, if your state's DMV issues a title or registration for it, than the IRS will consider it worthy
of receiving the vehicle charitable donation. There are always exceptions to the rule. Contact your state's DMV
to see how they classify the vehicle in question.
For additional information, consult the IRS web-site. The link is: www.irs.gov
#7 When Should The Donated Vehicle Be Appraised?
Now! There's no better time than the present. Your vehicle has the highest value now, it
should be appraised for that value in today's market. Depending upon the vehicle, its fair market or actual cash
value can drop quarterly, semi-annually or annually. Having the vehicle appraised now will guarantee that you will receive
the highest possible value.
The IRS also has strict guidelines as to when the appraisal must be performed in relation to the actual vehicle
donation date. Back To Top
#8 I've Already Donated A Vehicle...Can It Still Be Appraised?
Yes! Even though you aren't in possession of it, we can successfully appraise it. You will need
some basic information about it, such as the VIN#...mileage..overall basic condition. This information will be on the
receipt the charity gave you when they picked up or received the vehicle. Most of the other pertinent information you likely
already know.
Our exclusive, copyrighted Appraisal Information Report (AIR) is specifically designed for this purpose.
It will guide you step-by-step in providing all the required information to successfully achieve an accurate appraised
value.
#9 Will The IRS Accept Your Appraisal? YES!
We meet or exceed all IRS requirements regarding certified appraisals. We're a fully recognized IRS vehicle appraisal
service attaining acceptance number: 50-0586385. In fact, the IRS has retained aas
to perform appraisals. Every professional-certified appraisal is accompanied by the required IRS forms. The
same is true for all individual states that have specific appraiser/appraisal requirements. If the IRS accepts the appraisal,
so too, will the state.
#10 How Is The Appraisal Value Determined?
All appraisal values are determined by a professional-licensed-certified appraiser, strictly adhering to the guidelines
as established by NAVA - National Association of Vehicle Appraisers
and business practices within the BBB - Better Business Bureau.
Upon review of your submitted Appraisal Information Report (AIR), the vehicle's exterior, interior and all
mechanical components are evaluated to determine its basic quality and soundness. Next, any aftermarket item, as
well as restoration and/or customization work, is considered. All aspects of the vehicle are taken into consideration
when establishing an appraised value.
Depending upon the vehicle, various "value" designation guides are used to establish a base value. Then, all
the specifics of your vehicle are factored in. Your opinion is also considered. After all the information
is carefully reviewed, the final appraised value is established.
To maintain the highest quality possible, the appraisal is reviewed a second time to insure that a proper, in-depth appraisal
was performed rendering the highest possible appraised value to best suit your needs.
#11 What Is "Book" Value?Book value is a pre-assigned value of a vehicle by an independent
firm involved in the research of vehicles and their respective selling prices. There are several specific firms providing
such information. These "books" may offer several editions defining specific geographical locations throughout
the country. Which book is utilized to determine your vehicle's book value depends upon your vehicle as well as your
location. The varied "books/guides" available can be of a general practice type or one specific to a type
of vehicle. Similar to the law and medical professions, there are general practitioners as well as those specializing
in a specific field. When performing the aas Charity Donation Appraisal
Service, we use the most applicable "book" for your vehicle, the one that offers the highest values.
#12 What Is Comparable or "Comp" Value?Comparable values, often referred to by its slang
term "comps" are values of similar vehicles. If many 1999 Widgetmobiles are selling
for $1,000, than the "comp" value of a 1999 Widgetmobile is $1,000. Once a solid comparable
value is established, consideration is then given for your vehicle's particulars that will add or subtract to its final appraised
value. There are many factors that need to be considered in establishing a solid comparable value. It's more than
simply looking in a local newspaper. It's often quite difficult to establish a comparable value for a custom, specific,
or one-of-a-kind type vehicle, but aas can do it. IRS requirements
state that several comparable values must be considered in establishing any appraised charitable donation value.
Each comparable value must meet industry accepted guidelines in regards to its year-make-model-condition-geographical location-and
more. An aas certified-professional Charity Donation Appraisal easily
satisfies all IRS requirements.
#13 Is The Appraisal Certified?YES! Every automotive
appraisal services® appraisal meets or exceeds the strict
guidelines of certification and professional business practices as outlined by: - NAVA - National Association
of Vehicle Appraisers
- BBB - Better Business Bureau
- ABA
- American Bar Association
- IRS - Internal Revenue Service
Appropriate designations,
licenses, and applicable information are stated on the appraisal, announcing its certification and acceptance.
#14 Is The Appraisal Guaranteed?
YES! A 100% money back guarantee accompanies each appraisal.
(Some Restrictions Apply.....Details Accompany The Written Guarantee.....Consult Additional Information At: TERMS & CONDITIONS - Guarantee)
#15 Are Photographs Required?
Not necessarily. They help demonstrate what your words say, but they are not mandatory. An accurate appraisal
can still be performed without them. Our exclusive copyrighted Appraisal Information Report (AIR)
is designed for use with or without photographs.
#16 Don't You Need To See The Vehicle ... To Appraise It?NO! That's
a common misconception that is easily refuted. Our exclusive, copyrighted Appraisal Information Report (AIR)
was specifically designed for this purpose. All that's required is your information. All appraisal guidelines
as established by NAVA - National Association of
Vehicle Appraisers - to guarantee a professional certified appraisal can be met without
a physical inspection. aas Charity Donation Appraisal Service has
passed every test for accuracy and legality, and is readily accepted by the IRS.
#17 Can A Donation Appraisal Be Performed By Sending Information Via The Internet?
NO! A vehicle's "ball-park" or "general idea" type value is possible, but a professional-certified
appraisal, one that satisfies IRS requirements, is not possible. There are specific IRS requirements which must
be satisfied. These requirements cannot be met simply by providing a vehicle's information and receiving its value solely over
the Internet. For one thing, signatures from the donor, the charity, and the appraiser must be obtained. If
you need to know a vehicle's true appraised value, such as is the case with a charitable donation, a professional-certified
appraisal, consisting of specific information, must be performed.
Effective/Revised Dates: September 1999 ... May 2000 ... February
2001 ... June 2002 ... October 2002 ... February
2003 ... July 2004 ... September 2006 ... May 2008 ... March 2011 Copyright by: automotive appraisal services®
1996-2012
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