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Wednesday, November 4, 2015

WHEN AND WHY A CERTIFIED APPRIASER IS REQUIRED:

There are certain ways to appraise the Fair Market Value (FMV) of your donated car.  By using online car rating tools like Kelley Blue Book or the NADA Guides “http://www.nadaguides.com/,” you can get an initial FMV estimation of your donated car.

If your claimed tax deduction is greater than $5000 for your donated car, then a written appraisal of your car is required from a qualified appraiser.  As per IRS (https://www.irs.gov/pub/irs-pdf/p4303.pdf), page 7, 2nd paragraph, following guidelines will help you find the responsibilities of a qualified appraiser:

  1. Make sure that the appraiser is certified by the ASCAA.
  2. You can find a list of certified appraisers from the link below:
  1. As the first step, an appraiser would take the photograph of your vehicle.
  2. Would check the car documents.
  3. Would check the interior and exterior of your car.
  4. Would take a test drive of your car.
  5. A complete inspection of your car that affects your car value is noted down, which includes:
Ø  Make and Model.
Ø  Inside and outside condition.
Ø  Mileage.
Ø  Replaced parts in the vehicle.
Ø  Modifications in the vehicle.
Ø  Listing of extra features of your car such as security system, sound system, rims, etc.
Ø  Checking your car’s history report.

  1. Written appraisal should be mailed within 10-days.
  2. The expected date of donation.
  3. The appraiser should be up to date with the national sales and auction data so that he/she can easily compare your donated car against present market conditions.


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