Howard Nowes is a member of the Appraisers Association of America, Inc. [AAA]. All Howard Nowes Appraisals are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) set forth by the Appraisal Foundation in Washington D.C. and is bound by the strict Code of Ethics of the AAA.
Fine Art Appraisals
We will provide a professionally written appraisal for purposes
of insurance, fair market value, charitable donation, estate tax
or equitable distribution, according to your needs. Cost: $200
per hour including research, examination and travel time.
These appraisals will contain the following elements:
Name and Address of Client
Purpose of the Appraisal
Intended use: Donation, Estate, Equitable Distribution, Insurance,
Etc.
Type of Valuation Used.
Replacement Value, Fair Market Value, Marketable Cash Value, etc.
and Definition.
Valuation Approach used:
Cost Estimate Approach, Income Approach, Market Data Comparison
Approach, etc
Market in which valuation is applied; most common market (place).
Market Analysis:
Generic market History and possible projections for future activity.
How objects were acquired -- especially for IRS purposes.
Statement of Professional Qualifications of Appraisers. Curriculum
Vitae.
Date of Preparation of Appraisal and date on which objects were
viewed. Effective date of Appraisal.
Statement of physical inspection or method used in determining
value. Any qualifications?
Statement of "disinterest" on the part of the Appraiser.
Statement that the Appraiser has not been "disqualified"
by the IRS
(for IRS Appraisals).
Statement of Assumptions and Limiting Conditions.
Statement of Fee Structure.
(Statement that the Appraisers fee is not contingent on appraised
value of objects.)
Statement of belief in authenticity;
that the appraised object(s) correspond to description(s) listed
in the Appraisal.
Clear division of appraisal when one or more than one appraiser
is involved.
Who did what? Inclusion of Curriculum Vitae of consulting appraiser.
Thorough description of appraised objects.
Measurements and weights when applicable.
Brief biography of the artist when necessary.
Provenance (if available).
Exhibition and Publication History (if any).
Statement of condition of appraised objects.
Comparables and related analysis When necessary.
Firm statement of Value -- not estimates, except when followed
by detailed explanations of qualifications.
Signature of Appraiser(s) and Tax ID number(s) when appraisal
is prepared for IRS purposes.
Statement of number of pages in appraisal
Charitable Contributions and IRS Requirements
Appraisals for Paintings,
Antiques, and Other Objects of Art you plan to use as contributions
for deduction should be supported by a written appraisal from
a qualified and reputable source, unless the deduction is $5,000
or less. If you claim a deduction of $20,000 or more for donations
of art, you must attach a complete copy of the signed appraisal
to your return. For individual objects valued at $20,000 or more,
a photograph of a size and quality fully showing the object, preferably
an 8 x 10 inch color photograph or a color transparency no smaller
than 4 x 5 inches, must be provided upon request. If you donate
an item of art that has been appraised at $50,000 or more, you
can request a Statement of Value for that item from the IRS. You
must request the statement before filing the tax return that reports
the donation. Your request must include the following: A copy
of a qualified appraisal of the item. A $2,500 check or money
order payable to the Internal Revenue Service for the user fee
that applies to your request regarding one, two, or three items
of art (add $250 for each item in excess of three). A completed
appraisal summary (Section B of Form 8283, Noncash Charitable
Contributions.) The location of the IRS District Office that has
examination responsibility for your area.
If your request lacks essential information, you will be notified
and given 30 days to provide the missing information. You can
withdraw your request for a Statement of Value at any time before
it is issued. However, the IRS will not refund the user fee if
you do. If the IRS declines to issue a Statement of Value in the
interest of efficient tax administration, the IRS will refund
the user fee.
Authenticity
The authenticity of the donated art must be determined by the appraiser. Certificates of authenticity may be useful, but this depends on the genuineness of the certificate and the qualifications of the authenticator.
Physical condition.
Important items in the valuation of antiques and art are physical condition and extent of restoration. These have a significant effect on the value and must be fully reported in an appraisal. An antique in damaged condition, or lacking the "original brasses," may be worth much less than a similar piece in excellent condition. More weight will usually be given to an appraisal prepared by an individual specializing in the kind and price range of the art being appraised. Certain art dealers or appraisers specialize, for example, in old masters, modern art, bronze sculpture, etc. Their opinions on the authenticity and desirability of such art would usually be given more weight than the opinions of more generalized art dealers or appraisers. They can report more recent comparable sales to support their opinion.
Collections
Since many kinds of hobby collections may be the subject of a
charitable donation, it is not possible to discuss all of the
possible collectibles in this publication. Most common are rare
books, autographs, manuscripts, stamps, coins, guns, phonograph
records, and natural history items. Many of the elements of valuation
that apply to paintings and other objects of art, discussed earlier,
also apply to miscellaneous collections.
Reference material.
Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. When using one of these price guides, you must use the current edition at the date of contribution. However, these sources are not always reliable indicators of FMV and should be supported by other evidence. For example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. The appraiser must analyze the reference material, and recognize and make adjustments for misleading entries. If you are donating a valuable collection, you should get an appraisal. If your donation appears to be of little value, you may be able to make a satisfactory valuation using reference materials available at a state, city, college, or museum library.
Stamp collections
Most libraries have catalogs or other books that report the publisher's estimate of values. Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. Stamp dealers generally know the value of their merchandise and are able to prepare satisfactory appraisals of valuable collections.
Coin collections
Many catalogs and other reference materials show the writer's or publisher's opinion of the value of coins on or near the date of the publication. Like many other collectors' items, the value of a coin depends on the demand for it, its age, and its rarity. Another important factor is the coin's condition. For example, there is a great difference in the value of a coin that is in mint condition and a similar coin that is only in good condition. Catalogs usually establish a category for coins, based on their physical condition--mint or uncirculated, extremely fine, very fine, fine, very good, good, fair, or poor--with a different valuation for each category.
Books
The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences between the comparable sales and the item being evaluated. This is difficult to do and, except for a collection of little value, should be done by a specialized appraiser. Within the general category of literary property, there are dealers who specialize in certain areas, such as Americana, foreign imports, Bibles, and scientific books. Modest value of collection. If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV. A book that is very old, or very rare, is not necessarily valuable. There are many books that are very old or rare, but that have little or no market value. The condition of a book may have a great influence on its value. Collectors are interested in items that are in fine, or at least good, condition. When a book has a missing page, a loose binding, tears, stains, or is otherwise in poor condition, its value is greatly lowered. Some other factors in the valuation of a book are the kind of binding (leather, cloth, paper), page edges, and illustrations (drawings and photographs). Collectors usually want first editions of books. However, because of changes or additions, other editions are sometimes worth as much as, or more than, the first edition. Manuscripts, autographs, diaries, and similar items. When these items are handwritten, or at least signed by famous people, they are often in demand and are valuable. The writings of unknowns also may be of value if they are of unusual historical or literary importance. Determining the value of such material is difficult. For example, there may be a great difference in value between two diaries that were kept by a famous person--one kept during childhood and the other during a later period in his or her life. The appraiser determines a value in these cases by applying knowledge and judgment to such factors as comparable sales and conditions.
HNAA - By Appointment Howard M. Nowes, Director 1220 Broadway - Suite 405, New York, NY 10001 USA. Telephone: (917) 339-0620 or (917)733-4165 Fax: (917) 339-0621 Email US - hnowes@rcn.com