signing 8283 IRS appraisal form

[David Love]

I second this.  Replacement value is usually for purposes of insurance and
represents the coverage required to be assured that they could replace the
piano were their piano completely destroyed.  In actual fact, they could
probably replace a C7 for less than 30K.  Fair market value or what they
might sell their instrument for would be considerably less.  Appraisals
should always state the purpose of the appraisal with such disclaimers as
are necessary so that, for example, a replacement value appraisal with your
name on it is not used to represent fair market value for purposes of a
private sale.  

A second appraisal establishing FMV for the purpose of donation is now
necessary and should be well documented.  You should be paid a fee for your
research and for compiling the necessary evidentiary documentation.  If you
don't feel comfortable doing that type of research then you should simply
refer them to either a licensed appraiser or another technician who provides
these types of services.  I would not sign the IRS document.  In the future
be sure that you know what the appraisal is to be used for, state that on
your report, and explain that values, documentation and fees may differ
depending on the specifics of the situation.    

David Love
davidlovepianos at comcast.net 
www.davidlovepianos.com

-----Original Message-----
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of J Patrick Draine
Sent: Sunday, April 29, 2007 11:12 AM
To: Pianotech List
Subject: Re: signing 8283 IRS appraisal form

Julia,
I think you made an appropriate evaluation for the insurance
replacement value, but that certainly isn't the same as the 35 year
old piano's fair market value (which is what the IRS is interested
in). Aside from the piano *looking* great, was the pin torque
excellent, the tone of the piano really nice and consistent (i.e. the
killer octave isn't dead, or the bass way out of balance with the
tenor ), etc.? I think their tax writeoff would (at best) be for
several thousand, not $25K.
Research Larry Fine's (and Steve Brady's) piano depreciation tables,
and asking prices (doubtless negotiated lower in the actual
transactions) on pianomart.com.
Then charge them a *professional* fee for this further service. Don't
forget to reimburse your consultants (pianotech), in the form of a
donation to the PTG Foundation, or even better, making preparations
(studying the available exam prep booklets and articles) to take the
remaining RPT exams. Congratulations for having taken the first step
(the written exam) in that process.
Patrick

On 4/29/07, KeyKat88 at aol.com <KeyKat88 at aol.com> wrote:
>
>
> Greetings,
>
>           I had a lady customer who wanted an appraisal on the replacement
> value of her Yamaha C7. It was 1972 manufacture. I completely looked over
> the piano, and it was as new! She had a humidifier running and told me she
> had done so since the piano was new. By the looks of the piano I could
tell.
> I couldnt find a thing wrong with it. I wrote a letter stating that I did
a
> full inspection and then I called a dealer and asked what the price of
that
> piano. They told me 30,000.00 So I wrote that the replacement value of the
> piano was 30K.
>
>        Turns out they sold the piano for 5,000 to a non-profit music
> group and wrote 25,000.00 off their tax. Now they want me to sign this IRS
> form. My confidence is shaken, because I am suppose to sign this thing,
and
> it states that "I do appraisals on a regular basis"...however, I do tuning
> and repair on a regular basis. Am I over-worring here?  I mean, I think
the
> purpose of the form is to confirm that I just dont work at Turkey Hill or
> K-mart or something and that I do know the value of such things, which I
do
> know. Is there any responsibilty I have over looked. I am tuning,
repairing,
> refurbishing and evaluating for 4 years now. This is a first.
>
> Thanks in advance,
> Julia
> Reading, PA
>
>
> ________________________________
> See what's free at AOL.com.