A recent publication by the U.S. Government Accountability Office highlights the increasing IRS trend of auditing returns that include items likely to involve an appraiser. A primary focus is on gift and estate returns, which often include such items. IRS technical advisors identified several gifts as being likely to involve an appraiser, including:
• Retirement plans
• Personal residence
• Real estate, improved
• Real Estate partnerships
• Other limited partnerships
• Art
If you are considering gifting your business make sure to have a certified business valuator appraise it. You’ll be happy you did if the IRS should ever come knocking.