Exactly what the IRS considers a Qualified Appraisal for tax purposes, and whom it considers to be a Qualified Appraiser, are spelled out in detail in IRS Publication 561, Determining the Value of Donated Property.Īccording to Publication 561, a Qualified Appraisal must be done according to generally accepted appraisal standards, and no earlier than 60 days before the donation is made. This has actually been the case for some time, but the IRS is getting stricter about enforcing its rules, and some piano technicians and donors are finding their “appraisals” rejected by the IRS - and also by insurance companies, which are increasingly adopting the IRS standards.Īs part of the Pension Protection Act of 2006, Congress tightened the valuation and reporting rules for noncash charitable contributions. If the piano being donated is not in at least good used condition, this threshold drops to only $500. While such a process is still acceptable for some kinds of transactions, it can no longer be used to value noncash, tax-deductible contributions when the value claimed is over $5,000.
Value of 2001 baldwin digital piano serial#
The technician or dealer would then write a brief memo that included the piano’s brand name, serial number, and value you would enter that figure on your tax return and you could be more or less assured that this “expert” opinion would not be challenged by the Internal Revenue Service. Because each piano is, to some extent, unique, and comparable sales are therefore hard to find, this valuation process would sometimes more closely resemble the seeking of divine revelation than it would hard science. He or she would search memory for a recent transaction involving a similar instrument, and would settle on a figure that “felt” right. Where was once a time when, for tax-deduction purposes, if you needed to know the value of a piano you were donating to an institution or charity, you would just contact your piano technician or dealer.