When dealing with tax-related matters such as charitable donations, estate tax filings, and gift tax reporting, an accurate and IRS-compliant jewelry appraisal is essential. The Internal Revenue Service (IRS) has specific regulations to ensure the credibility and reliability of appraisals submitted for tax purposes. Understanding these requirements can help avoid complications and ensure your valuation holds up in case of an audit.

What Is an IRS Qualified Appraisal?

An IRS Qualified Appraisal is a written report that meets the strict standards set forth by the IRS under IRS Code §170(f)(11)(E) and §6695A. To be accepted for tax deductions, estate settlements, or gift tax filings, the appraisal must:

• Be conducted by a Qualified Appraiser with recognized credentials and relevant expertise.

• Follow the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines.

• Include a detailed description of the jewelry, including weight, quality, metal type, gemstone details, and provenance if applicable.

• Explain the valuation methodology used to determine the fair market value.

• Be signed and dated by the Qualified Appraiser.

Submitting an appraisal that fails to meet these standards may result in the denial of deductions or tax penalties.

Who Qualifies as an IRS Qualified Appraiser?

A Qualified Appraiser, as defined under IRS Code §170(f)(11)(E), is an individual who:

• Has earned a recognized professional credential in the field of jewelry appraisal, such as Master Gemologist Appraiser®, Accredited Senior Appraiser (ASA), or equivalent.

• Regularly performs appraisals for compensation.

• Can demonstrate verifiable education and experience in valuing the type of property being appraised.

• Is not the seller, buyer, or an interested party in the transaction.

Additionally, under IRS Code §6695A, appraisers can face penalties if their appraisal results in a substantial valuation misstatement, reinforcing the importance of choosing a professional with the appropriate expertise.

Why IRS Compliance Matters for Jewelry Appraisals

Failing to comply with IRS guidelines can lead to rejected tax filings, audits, or even penalties. Whether you are donating jewelry to a museum, settling an estate, or reporting a high-value gift, a properly documented and IRS-compliant appraisal ensures that your valuation is legally defensible.

How to Choose the Right Qualified Appraiser for Your Jewelry

When selecting an appraiser for tax-related valuations, look for:

✔ Recognized credentials such as Master Gemologist Appraiser® or Accredited Senior Appraiser (ASA).

✔ Experience in valuing fine jewelry, watches, and gemstones.

✔ A strong reputation with appraisals accepted by insurance companies, law firms, and fiduciaries.

✔ Adherence to USPAP standards to ensure unbiased and professional reporting.

If you require an IRS Qualified Appraisal for jewelry, choosing an appraiser with the right credentials and experience is crucial. A compliant appraisal not only ensures accuracy in valuation but also protects you from potential tax disputes. Always verify your appraiser’s qualifications and ensure their report meets IRS standards for credibility and acceptance.

Master Gemologist Appraiser® Trang Pham at La Jolla Gem Appraisal