Elements of a Correctly Prepared Art Appraisal

At Anderson Fine Art Appraisals, we prepare every report in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) — the nationally recognized ethical and performance standards for the appraisal profession.

A correctly prepared appraisal protects you, your heirs, and your assets. Whether for insurance, estates, charitable donations, or litigation, the following elements are required for an IRS-qualified and USPAP-compliant report.

Quick Checklist of Appraisal Elements

  • Client and appraiser identification (with CV/qualifications)

  • Signed certification with impartiality and no bias statement

  • Clear scope of work and intended use

  • Appraisal purpose (insurance, estate, donation, collateral, etc.)

  • Report type (summary, restricted use, self-contained)

  • Type of value (fair market, replacement cost, liquidation, etc.)

  • Marketplace considered (auction, retail, wholesale)

  • Relevant dates (inspection, effective date, report issue)

  • Detailed object descriptions (artist, title, medium, condition, provenance)

  • Disclaimers and assumptions (not a certificate of authenticity)

  • IRS-specific requirements (Form 8283, related use, appraiser qualifications)

  • Supporting documentation (market analysis, comparables, artist biography)

Full USPAP Elements (Detailed Guide)

1. Client & Appraiser Information

Name and address of client

Appraiser’s name, contact information, CV, and professional qualifications

2. Signed Certification

Includes statements of:

Truth and accuracy

Impartial and unbiased conclusions

No financial or personal interest in the property

Fee structure not contingent on value

On-site inspection disclosure

USPAP compliance with relevant date

All signatures

3. Scope of Work

Defines the appraisal process, including:

Problem to solve and category of property (fine art, prints, household contents, etc.)

Client, owner, intended use, and intended users

Type of value and source definition

Marketplace considered (auction, retail, etc.)

Effective date of valuation

Extent of inspection, examination methods, and research

4. Purpose of the Appraisal

Examples:

Insurance

Estate settlement or estate planning

Charitable donation (IRS Form 8283)

Collateral, liquidation, damage, loss, or tax purposes

5. Report Type

Self-contained

Summary

Restricted use

6. Approaches to Value

Market Data Comparison

Cost Approach

Income Approach

7. Types of Valuation

Fair Market Value

Retail Replacement Cost

Marketable Cash Value

Liquidation or Salvage Value

Replacement Cost New

8. Marketplace Considered

Auction (high-end, mid-range)

Retail galleries

Wholesale or consignment venues

Geographic location

9. Relevant Dates

On-site inspection date

Effective valuation date

Report issue date

Other key dates (date of death, date of donation, etc.)

10. Object Descriptions

Artist, title, medium, dimensions, markings

Condition report and frame description

Provenance, catalogue raisonné, exhibition/publication history

Statement of value appropriate to appraisal purpose

11. Disclaimers & Limitations

Belief in authenticity (not a certificate of authenticity)

Extraordinary assumptions

Page count statement

12. IRS-Specific Requirements (Estate & Donation)

Confirmation appraiser not disqualified by IRS

Tax ID number of appraiser

Statement acknowledging IRS use and civil penalty risk

Acquisition history and value paid (if known)

Related Use and Donee identification for donations

13. Supporting Documentation

Market analysis and comparables (with annotations)

Artist/school biography

Consultant input where relevant

Why USPAP Compliance Matters

A USPAP-compliant appraisal:

Ensures credibility for IRS, courts, and insurers

Provides accurate, defensible valuations for estates and donations

Demonstrates independence, objectivity, and transparency

At Anderson Fine Art Appraisals, every report is tailored to meet both the highest professional standards and the specific needs of our clients — from private collectors to attorneys, executors, and financial advisors.