Gift Commercial Appraisals
When commercial real estate is transferred as a gift—to family, a trust, or an entity—an independent valuation documents the value of what was given. We provide defensible appraisals for gift documentation and the tax filings that follow.
A gift appraisal values commercial real estate—or an interest in it—at the time it is transferred as a gift. It is an appraisal assignment, and the value conclusion reflects market conditions as of the date of the gift. The deliverable is an appraisal report documenting the property and a supported value conclusion that the donor and their tax advisor can use to support the gift filing.
We do not determine whether a transfer qualifies as a gift for tax purposes, and we do not promise acceptance by the IRS or any taxing authority. Whether the appraisal must be performed by a "qualified appraiser" under the applicable rules, and the value definition required, should be confirmed with your tax advisor before you engage. We provide an independent appraisal performed to professional standards.
When Clients Need This Service
Owners and their advisors request gift appraisals when commercial real estate—or a partial interest in it—is transferred as a gift to family, a trust, an entity, or a charity. The valuation documents the value of the gift for the donor's records and any tax filing.
For example, an owner transferring a 25% interest in a commercial building to a child may need a defensible value of that interest for the gift. An owner contributing a property to a family LLC may need the value of the contribution. In each case, a supported appraisal gives the advisor a credible figure to work from, rather than an estimate that could be challenged.
What the Analysis Considers
The factors relevant to this assignment vary with the property and the question being asked. Depending on the agreed scope, the analysis may consider:
- The date of the gift and the applicable definition of value, confirmed with the tax advisor
- Whether the gift is the whole property or a partial/fractional interest
- Market value supported by comparable sales, income, and cost evidence as of the gift date
- Any adjustments for lack of control or marketability where a fractional interest is gifted, as supported and applicable
- Leases, occupancy, and operating expenses for income property
- The report format and qualifications the rules or the advisor require
- Whether a current or retrospective value is required
Not every assignment applies all three valuation approaches. The approaches used depend on the property type, available data, and the assignment's intended use.
Documents & Information That May Help
Providing the following can streamline an assignment, but not every item is required to begin. We can discuss what is available during the initial call.
The date of the gift and the interest transferred
Ownership or entity documents
If a partial interest is involved
Property address and legal description
Leases and rent roll as of the gift date
Tax advisor's requirements
Value definition and qualifications
How the Engagement Works
Every engagement begins with a conversation so the scope, fee, and timing fit the property and the question you need answered. A typical engagement moves through these stages:
Initial discussion
We learn the property, the interest gifted, and the date and definition required.
Scope confirmation
We confirm the definition of value, effective date, report format, fee, and timing—and the qualifications required.
Information collection
We gather ownership, lease, and financial documents for the gift date.
Inspection & research
We inspect when appropriate and research market evidence as of the gift date.
Analysis & delivery
We conclude value and deliver the report for your advisor's use in the gift filing.
Scope, fees, and timing depend on the property type, assignment complexity, and the report format the client or intended user requires. We confirm these in writing before work begins.
Frequently Asked Questions
Common questions about this service.
Request Your
Free Appraisal Quote
Tell us about your property and what you need the valuation to address. To help us respond quickly, please include the property address, property type, assignment purpose, the relevant valuation date, and your requested completion date.
Gold Rush Appraisal provides commercial real estate valuations across Texas. Call us directly or send the details through the form and we'll get back to you promptly.
214-761-6875