Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
rogerlbeck
Returning Member

I found a ring. Is the appraisal fee deductible since it would be required to ascertain fair market value? If so, what forms are involved?

 
1 Best answer

Accepted Solutions
Opus 17
Level 15

I found a ring. Is the appraisal fee deductible since it would be required to ascertain fair market value? If so, what forms are involved?

If you keep the ring, then your appraisal cost is not deductible.

If you sell it, you can use the appraisal cost as your "cost."  (Any time you sell property, you owe capital gains tax if you sell it for more than your cost.)

If you donate it to charity, you generally can't deduct anything for the value, because this is  something you found and did not buy, so you don't have any "Basis" in it.  And the appraisal won't be deductible.

The ring is deductible as a charity donation only if you donate it to an organization that will use it as it is -- a ring -- and not sell it for funds, AND only if you hold it more than a year.  That might be a museum if it is rare or unusual.  I can't think of any other kind of charity that would keep the ring as a ring but maybe my imagination is limited.  If the charity keeps the ring as a ring, then you can deduct the appraisal fee as a 2% miscellaneous itemized deduction.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

1 Reply
Opus 17
Level 15

I found a ring. Is the appraisal fee deductible since it would be required to ascertain fair market value? If so, what forms are involved?

If you keep the ring, then your appraisal cost is not deductible.

If you sell it, you can use the appraisal cost as your "cost."  (Any time you sell property, you owe capital gains tax if you sell it for more than your cost.)

If you donate it to charity, you generally can't deduct anything for the value, because this is  something you found and did not buy, so you don't have any "Basis" in it.  And the appraisal won't be deductible.

The ring is deductible as a charity donation only if you donate it to an organization that will use it as it is -- a ring -- and not sell it for funds, AND only if you hold it more than a year.  That might be a museum if it is rare or unusual.  I can't think of any other kind of charity that would keep the ring as a ring but maybe my imagination is limited.  If the charity keeps the ring as a ring, then you can deduct the appraisal fee as a 2% miscellaneous itemized deduction.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Dynamic AdsDynamic Ads
Privacy Settings
v