Example 1The alternative route to satisfy the education and experience requirements is by earning a "recognized appraiser designation" for the type of property that is being valued. Reg. 1.170A-17(b)(2)(i)(B). This designation must be obtained from a generally recognized professional appraiser organization and the individual must earn the designation through demonstrated competency. Reg. 1.170A-17(b)(2)(iii).
Rory is an ambitious lifelong student. She is very excited to have completed a rigorous educational course from a generally recognized appraiser organization. The course taught Rory how to value dollhouse furniture. Rory is particularly pleased that she passed the course because she has received her first request to appraise a set of dollhouse furniture that is being donated to charity. Rory is dismayed to find out that because she has only been valuing dollhouse furniture for the past 6 months, she will not be considered a qualified appraiser and cannot complete the qualified appraisal for the charitable contribution.
Example 2Type of Property Definition
Dean holds a recognized appraisal designation from a generally recognized professional appraiser organization in commercial real estate. Because Dean holds a recognized appraisal designation in the type of property, he would be considered a qualified appraiser for real property. Dean's appraisal designation is proudly displayed on his office wall. In his qualified appraisals, Dean includes a statement as to his designation, the type of property his designation is for and a declaration stating he is qualified to provide appraisals for the type of property being valued.
Example 3Excluded Individuals
Emily has a recognized appraisal designation in valuing mid-century glass. A donor requested that Emily appraise hobnail milk glass cake stands created in the mid-1950s. The cake stands were being donated to charity for use at its annual bake sale. Because hobnail milk glass falls within the general category of mid-century glass, Emily may be deemed a qualified appraiser for this type of property.
Example 4Prohibited by IRS
Kirk works as an independent contractor and has an appropriate appraisal designation. A very large, philanthropic family at a particular charity consistently retains his services for appraisal valuations. The family refers other relatives to Kirk for his appraisal services. Kirk begins to struggle to keep up with the family's different charitable contribution appraisals. Kirk realizes that if he does not also appraise items for other individuals outside of this philanthropic family, he may not be considered a qualified appraiser. Kirk ensures that through his workload, the majority of his appraisals are for other individuals outside the relation of this family to safeguard his qualified appraisal recognition.