Read all about it: What standards apply to an estate/gift tax appraisal?

BVWireIssue #125-1
February 6, 2013

A recent discussion on LinkedIn’s BV Professionals group (membership required) reflects the continuing debate among appraisers—as well as some confusion—regarding the applicable standards to estate and gift tax appraisals. The original question, posed by Mark Bulmer, essentially asked whether it was necessary to certify compliance with USPAP as well as SSVS-1 when valuing an operating company in connection with estate/gift valuations.

From a credentials standpoint, “the ASA is the only credentialing group that requires compliance with USPAP,” says Bob Morrison. “From the IRS's standpoint, the Pension Protection Act of 2006 (PPA) suggests that an appraisal conducted in compliance with a recognized body of appraisal standards and referencing USPAP … is more likely to meet the ‘qualified appraisal’ requirement in the PPA.” Morrison also suggests an article by Mike Crain in the Journal of Accountancy as a “good read for CPAs doing estate and gift tax appraisals,” available here.

For a further comparison of SSVS-1 to USPAP and other valuation standards, James Feldman suggests “an excellent article” by Martin Lieberman and David Anderson:Will the Real Business Valuation Standards Please Stand Up?" (CPA Journal).

Another good read and analysis. After following the discussion thread, Jim Hitchner was prompted to write a thorough overview, adding his own insights and comments but astutely avoiding the “designation wars” that could plague the topic (and which leads to his referring to some of these discussions as “LinkedOut”). Read his entire analysis, currently posted at NACVA’s QuickRead.

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