What are appraisals required for?

Appraisals are required whenever a governing authority (the IRS, a court, an insurer, or a lender) needs an independent, documented value to support a filing, claim, or decision. Rather than a single rule, each purpose has its own trigger for when a formal appraisal becomes necessary.

The most common triggers include:

• Charitable donations (IRS Form 8283): a qualified appraisal is required when the claimed deduction for a single item, or a group of similar items, exceeds $5,000. Deductions over $500,000 generally require the appraisal itself to be attached to the return, and donated artwork over $20,000 carries the same attachment requirement.
• Estate settlement and estate tax filings: the IRS requires a documented fair market value of personal property as of the date of death to support Form 706 and the overall estate accounting.
• Insurance coverage and claims: insurers typically require a current appraisal to set coverage limits on high-value items or to document a loss after theft, fire, or damage.
• Litigation and divorce (equitable distribution): courts often require an independent valuation of personal property to divide assets fairly or to support expert testimony.
• Financing or collateral review: lenders may request a valuation of personal property pledged as collateral before extending credit.

In every case, the report has to be prepared by a qualified appraiser and follow recognized methodology so it holds up to scrutiny from whichever party is reviewing it. Our appraisers hold credentials with organizations such as the ASA, ISA, and AAA, and every report from Chicago Personal Property Appraisers is prepared in accordance with USPAP. If your appraisal is for a charitable gift, see our personal property appraisal for charitable donation page, and if it's for a federal estate filing, see our personal property appraisal for estate tax services for the specific documentation each purpose requires.