Tax Appraisals and Report Dates

First, let’s address the concept of “revising” an appraisal report. In this instance, the request constitutes
a new assignment under USPAP, rather than a revision of the prior appraisal. As Advisory Opinion 3 (AO-
3) explains:

“Regardless of the nomenclature used, when a client seeks a more current value or analysis of a property
that was the subject of a prior assignment, this is not an extension of that prior assignment – it is a new
assignment.”

In addition, USPAP FAQ 146 specifically addresses changing the effective date:

“If the client is asking for an appraisal with a different effective date, the appraiser must determine the
appropriate scope of work to produce credible assignment results. Such a request must be considered a
new assignment, though it does not necessarily require starting from scratch.”

Alternate Valuation Date

As a reminder, for estate tax purposes, the fair market value of the decedent’s property is normally
determined as of the date of death. However, Section 2032 of the Internal Revenue Code provides for an
alternate valuation date, which is six months after the date of death. The appraiser does not choose the
effective date but instead determines fair market value as of the specific date identified by the client
(either the date of death or the alternate valuation date).

When using the alternate valuation date, you should clearly state that the estate chose to use the
alternate valuation date of XX/XX/XXXX for the effective date in your cover document.

USPAP Certification

Finally, remember that USPAP requires disclosure in the certification if you have appraised or performed
any services with the property within the past three years.