Fair Market Value · Form 709

Gift tax appraisals

Lifetime transfers of art and personal property above the annual exclusion require a Fair Market Value appraisal to support Form 709. The standard of value is the same as for estate tax, and the scrutiny is comparable.

When it comes up

Common triggers for New York families

Gifting works to children, or into a trust
Funding a family LLC or partnership with tangible property
Transferring a collection during life to manage a future estate
Fractional interest gifts to a museum
Any transfer where the recipient will later need a basis figure
Moving property out of a New York estate ahead of the state’s estate tax threshold

Adequate disclosure

Why the appraisal matters beyond the filing

A properly documented appraisal filed with the return starts the statute of limitations on the reported value. Without adequate disclosure, the IRS may revisit the valuation years later, often when the donor is no longer available to explain it.

The appraisal is therefore long-term protection, and worth doing properly the first time.

What you get

A report your accountant can file

Fair Market Value as of the date of the gift, with full description, condition, provenance where relevant, photography, comparable market analysis, the appraiser’s qualifications and a signed certification, structured to satisfy the adequate disclosure requirements and delivered in the format your accountant requests.

Common questions

Is a gift tax appraisal the same as an estate appraisal?

The standard of value is the same, Fair Market Value, but the effective date differs: an estate appraisal values as of the date of death, a gift appraisal as of the date of transfer. The research and reporting requirements are otherwise comparable.

Is an appraisal needed for a gift under the annual exclusion?

Generally no return is required, so generally no appraisal. But where the value is uncertain, as it usually is with art, an appraisal establishes that the gift fell under the exclusion rather than assuming it.

What about fractional gifts to a museum?

Fractional interest gifts carry their own rules on subsequent contributions and valuation, and the value cannot be increased on later fractions. Consult your attorney before the first fraction is transferred, and bring the appraiser in at the same time.

Rate

$275 per hour

Estate, gift and donation rate. No project minimum. Fees are never based on the value of the property. Full fee schedule

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