If you are making a charitable donation of residential real estate or building components in the Phoenix metro area, you need an IRS qualified appraisal to substantiate your deduction. Censeo Valuation Consultants provides IRS qualified appraisal services in Phoenix and throughout Maricopa County, prepared in full compliance with IRS Publication 561 and USPAP standards. Andrew Ament, Arizona Certified Residential Appraiser (License #21472), has extensive experience preparing qualified appraisals for donation tax filings, estate planning, and audit defense – trusted by CPAs, tax attorneys, and donors throughout the Phoenix area.
What Makes an IRS Qualified Appraisal Different
An IRS qualified appraisal is not simply an opinion of market value.
For charitable contribution purposes, the appraiser must determine and clearly support the contributory value of the donated real property improvements, using accepted valuation methods and detailed documentation consistent with Treasury Regulations.
These assignments typically involve:
• Expanded market analysis and documentation
• Cost and depreciation analysis where applicable
• Clear linkage between market value, contributory value, and donated components
• Compliance with IRS-specific reporting and certification requirements
• Preparation of a report suitable for reliance by tax advisors and the Internal Revenue Service
Because of this increased scope and professional liability, IRS qualified appraisals differ materially from mortgage lending appraisals in both structure and fee.
Contributory Value vs. Salvage or Resale Value
For IRS purposes, the charitable deduction is based on the contributory value of the donated improvements to the real property, not the salvage or resale value of removed materials.
This distinction is critical and often misunderstood.
A properly prepared IRS qualified appraisal analyzes how the donated components contribute to the overall value of the real estate as of the effective date of valuation, consistent with IRS guidelines. This analysis is frequently the difference between a modest deduction and a properly supported six-figure or greater charitable contribution.
When an IRS Qualified Appraisal Is Required
A qualified appraisal is generally required when:
• Residential improvements are donated in connection with a remodel or teardown
• The claimed deduction exceeds IRS reporting thresholds
• The donor’s tax advisor requires formal valuation support
• The valuation may be subject to IRS review
We regularly work with donors and their advisors to ensure the appraisal scope aligns with the intended tax reporting.
Fee Structure
Fees for IRS qualified charitable contribution appraisals are based on assignment complexity, scope of donated improvements, property value range, and the level of documentation required to support the charitable deduction.
These fees are not based on standard residential appraisal pricing models. Each assignment is quoted individually after reviewing the details to ensure the scope and reporting are appropriate for IRS compliance and audit defensibility.
Why Clients Choose Censeo Valuation Consultants
• Over 20 years of residential valuation experience in the Phoenix metro area
• Specialized focus on IRS qualified and non-lender appraisal assignments
• Clear, defensible reporting designed for tax reliance
• Direct communication with clients and their tax advisors
• Conservative, well-supported valuation methodology
Our goal is to provide valuation work that allows donors and their advisors to rely on the appraisal with confidence.
If you are considering a charitable contribution involving residential real estate improvements, we recommend discussing valuation requirements with your tax advisor early in the process.
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To request a consultation or discuss scope and timing, please contact us using the form below.
*Censeo Valuation Consultants does not provide tax or legal advice. Clients should consult their CPA or attorney regarding tax reporting requirements.