M&E Appraisal Associates, Inc. (M&EAA) is expert in providing machinery & equipment appraisals for charitable contribution purposes.

IRS Publication 561 (Rev. April 2007) “Determining the Value of Donated Property” requires a qualified appraisal by a qualified appraiser for donated property for which a deduction of $5,000 or greater is claimed.

A qualified appraisal must include the following information:

1. A description of the property in sufficient detail for a person who is not generally familiar with the type of property to determine that the property appraised is the property that was (or will be) contributed,

2. The physical condition of any tangible property,

3. The date (or expected date) of contribution,

4. The terms of any agreement or understanding entered into (or expected to be entered into) by or on behalf of the donor that relates to the use, sale, or other disposition of the donated property, including, for example, the terms of any agreement or understanding that:
a. Temporarily or permanently restricts a donee’s right to use or dispose of the donated property,
b. Earmarks donated property for a particular use, or
c. Reserves to, or confers upon, anyone (other than a donee organization or an organization participating with a donee organization in cooperative fundraising) any right to the income from the donated property or to the possession of the property, including the right to vote donated securities, to acquire the property by purchase or otherwise, or to designate the person having the income, possession, or right to acquire the property,

5. The name, address, and taxpayer identification number of the qualified appraiser and, if the appraiser is a partner, an employee, or an independent contractor engaged by a person other than the donor, the name, address, and taxpayer identification number of the partnership or the person who employs or engages the appraiser,

6. The qualifications of the qualified appraiser who signs the appraisal, including the appraiser’s background, experience, education, and any membership in professional appraisal associations,

7. A statement that the appraisal was prepared for income tax purposes,

8. The date (or dates) on which the property was valued,

9. The appraised FMV on the date (or expected date) of contribution,

10. The method of valuation used to determine FMV, such as the income approach, the comparable sales or market data approach, or the replacement cost less depreciation approach, and

11. The specific basis for the valuation, such as any specific comparable sales transaction.

A qualified appraiser is an individual who meets all the following requirements.

1. The individual either:
a. Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
b. Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised in the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.

2. The individual regularly prepares appraisals for which he or she is paid.

3. The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued.

4. The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.

5. The individual is not an excluded individual.

The principal of M&EAA, Gregory F. Feinsinger, has over 25 years of experience providing machinery & equipment appraisals for the purposes of charitable contributions.