Insights
Appraisal Guides & Insights
Expert appraisal guidance — what drives value, when you need a USPAP-compliant appraisal, and how the process works.
Latest posts
How LIFO Layers Affect Your Charitable Donation Basis for Inventory Gifts
Donated inventory is generally deductible at tax basis, not fair market value, and which LIFO layer you draw down can change how large that basis is. This guide walks through the basis-cap rule, the FIFO versus LIFO contrast, and the cost-of-goods-sold adjustment accountants often miss.
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The LIFO Conformity Rule: Can You Use LIFO for Taxes but FIFO for Books?
The LIFO conformity rule under IRC Section 472(c) bars a company from reporting FIFO income to shareholders or lenders while using LIFO on its tax return. This guide explains the real exceptions, the controlled-group trap, and why appraisers need to know which costing method is actually in force before valuing inventory.
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How Statistical Sampling and Confidence Intervals Shape Large Inventory Appraisals
Statistical sampling for inventory appraisal lets appraisers value warehouses and retail lots holding thousands of SKUs without counting every unit, using stratified samples and calculated confidence intervals to reach a defensible value conclusion.
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Orderly Liquidation Value in Inventory Appraisal: How it Differs From Fair Market Value
Orderly liquidation value assumes a seller compelled to sell inventory within a limited but reasonable window, while fair market value assumes no such pressure. This guide explains how the two premises differ, why lenders default to orderly liquidation value for inventory collateral, and how the dollar conclusion changes between them.
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Date of Death Inventory Valuation for Estates: What Executors Need to Know
Estate inventory must be valued at fair market value as of the decedent's date of death, never at cost or liquidation price. This guide explains the IRC Section 2032 alternate valuation election, the Form 706 appraisal requirements, and the records executors need to support a defensible date of death inventory valuation for an estate.
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How Lenders Use Inventory Appraisals to Set Asset-Based Lending Collateral Values
An inventory appraisal for asset-based lending gives lenders the net orderly liquidation value that sets your borrowing base advance rate, not a market value estimate. Here is how that number gets built, what documentation to prepare, and how often the appraisal gets refreshed over the life of the loan.
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Food Inventory Donation Appraisals and the IRS Rules Behind the Enhanced Deduction
Donating excess food inventory can trigger an enhanced deduction under IRC Section 170(e)(3), but the formula, the PATH Act eligibility rules, and the $5,000 qualified appraisal threshold each work differently than a standard inventory write-off. This guide walks through the math, who qualifies, and when a professional appraisal is actually required.
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How Ordinary Income Property Is Appraised for Charitable Donation Deductions
Donating business inventory, self-created art, or short-term-held assets triggers a different valuation rule than typical property gifts: the deduction is capped at cost basis, not fair market value. This guide explains the IRC 170(e)(1)(A) limitation, when a qualified appraisal is actually required, and how Form 8283 applies.
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IRS Inventory Donation Appraisal Requirements: A Documentation Checklist for Businesses
Donating inventory to charity comes with its own IRS documentation rules, separate from the usual $5,000 appraisal trigger. This checklist walks through what records to keep, how Form 8283 treats inventory differently, and why fair market value documentation still matters even when a qualified appraisal isn't strictly required.
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What is an Inventory Appraisal?
An inventory appraisal is a formal, documented valuation of goods a business holds for sale or use in operations. This guide explains what the process covers, which value standards apply to lending, tax, M&A, and insurance purposes, and what qualified appraisers actually do.
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