FAQs

Yes, Non-Cash Charitable Donations to applicable 501(c)3’s are generally qualified for a Fair Market Value tax deduction. Artworks valued over 5,000 USD require a qualified Appraisal Report and accompanying IRS 8283 form subject to specific development and reporting requirements.

The Appraisal Report may be issued up to 60 days ahead of the ratification date of the donation, or anytime after the transfer of property, before the tax filing deadline. The Effective Date of the Appraisal Report is the date of the transfer of property.

Artworks with value in excess of 50,000 USD require three comparable sales to be included in the report. However, Appraisal Bureau normally includes comparable sales for lower valued works as well.

The IRS 8283 form must be completed by the Appraiser who signed the Appraisal Report, and additionally acknowledged by the donee.

If sold within three years of the date of the transfer of property, the donee must file an 8282 to the IRS, in which case the tax deductions are not honored.

Appreciated values are not honored in this case the deduction amount is the lesser of the purchase price or Fair Market Value.

Fair Market Value, which relies on the most appropriate marketplace to reflect the amount at which the artwork would trade in an open market with a willing buyer and willing seller. This may be auction, gallery retail, private sale or a combination thereof.

It is possible to file retroactively, with the Effective Date matching the original ratification date.

Reach out to Museum Exchange! Or ask us for more details.

An Appraiser first assesses the purpose of the report, and identifies the appropriate market for valuation and the correlated approach to value. Different uses of Appraisals require different types of value.

For example, insurance carriers require Retail Replacement Value reports, the IRS generally requires Fair Market Value, and an Equitable Distribution report may call on Marketable Cash Value.

Appraisal Bureau charges flat fees for our reports based on the number of artists and artworks included. Our minimum fee is 1,000 USD.

Art Appraisers assess the value of artworks for a defined purpose using the relevant market and approach to value for the end use.

Fine Art Appraisers must be USPAP (Uniform Standards of Professional Appraisal Practice) compliant, completing an initial 15 hour course and exam, followed by a 7 hour course update every 2 years.

There is no “license" to appraise, rather compliance to USPAP.

The IRS defines a Qualified Appraiser as follows:

• Section 170(f)(11)(E)(ii) provides that the term qualified appraiser means an individual who (1) has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations prescribed by the Secretary, (2) regularly performs appraisals for which the individual receives compensation, and (3) meets such other requirements as may be prescribed by the Secretary in regulations or other guidance.

• Section 170(f)(11)(E)(iii) provides that an individual will not be treated as a qualified appraiser with respect to any specific appraisal unless that individual (1) demonstrates verifiable education and experience in valuing the type of property subject to the appraisal, and (2) has not been prohibited from practicing before the IRS by the Secretary under section 330(c) of Title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.

Appraisal Bureau issues Appraisals for purposes of Insurance, Tax & Estate Planning, Charitable Donation and Art as Collateral. We are always third-party neutral, with no bias to any party.

Different end uses of Appraisals may require different types of value. Insurance generally relies on Retail Replacement Value. Fair Market Value may be applied to anything submitted to the IRS, including Charitable Donation. Art as Collateral either calls for Fair Market Value or Marketable Cash Value, which is generally Fair Market Value less the cost of owning and selling. Liquidation Value or Block Discounts may be applicable in particular circumstances.

This is an independent organization established in 1987 by the US government with members from various appraisal organizations. The Appraisal Foundation is Congressionally adopted and receives federal funding to establish standards for all aspects of the appraisal profession.

Not necessarily, we often write desktop appraisals from digital images. If necessary we arrange onsite visits or conservator reviews.

A Non-Fungible Token is a unique digital identifier recorded on a blockchain. NFTs point to digital files such as photographs, films and music. An NFT may represent nearly anything, can be bought and sold, and cannot be replicated as each one is unique.

While NFTs and Cryptocurrency rely on similar technology, they are very different. NFTs are “Non-Fungible" or unique, and non-interchangeable. While cryptocurrencies are fungible tokens and purely economic with value derived from utility as a currency.

As defined by the Appraisal Standards Board (ASB) in the Uniform Standards of Professional Appraisal Practice (USPAP) an Appraisal is “the act or process of developing an opinion of value." According to the ASB, value can “be numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g. assessed value, collateral value)." The document contains a valuation executed for a specific purpose and follows specified guidelines. An Appraisal of an NFT follows suit of Appraisals of physical assets, defining a purpose, approach to value, and additional details as required by the end user of the report.

Yes, NFTs can get “burned,” or sent to a faulty wallet address. If an owner loses the private key, the account is no longer accessible and the NFT cannot be retrieved. Digital Asset security is extremely important as losses have occurred due to scams and hacks.

The answer to that question begins with a question: what kind of NFT is it? Is there an associated physical asset, is it part of a collection? Once parameters are determined, the appropriate valuation approach is applied. The end use of the report also informs the valuation approach. Appraisal Bureau’s proprietary methodology and technology allows for accurate reporting while remaining USPAP and regulatory compliant.

Yes and no. An Appraisal is an opinion of value relying only on data available as of the Effective Date of the Appraisal. Appraisers do not predict or speculate on markets or prices. However, the technology used to arrive at a valuation within an Appraisal, such as Machine Learning, may make predictions within a model - but this is not a prediction of an Appraised value. We are happy to further discuss this nuance as we introduce our new technology.

Absolutely. Appraisal Bureau's proprietary technology tracks the volatility of the markets to deliver the most accurate opinion of value.

The valuation of the IP is separate from the valuation of the asset. IP may be an income generating asset, which has a different valuation approach than Personal Property.

NFTs are purchased on marketplaces such as OpenSea or Nifty Gateway via a Web3 wallet, such as MetaMask or Coinbase.