There are many reasons you may want and or need an art appraisal. Listed below are some of the most common reasons for an art appraisal.
1. Insurance Coverage – Replacement cost
Most Insurance companies will require an appraisal for items valued over $2500 or $5000. Insurance company requires:
a. Proof item existed
b. Value of item
2. Charitable Donation
According to IRS Regulation 561, all artwork donations must meet specific criteria:
a. Must be to a qualified non-profit organization.
b. All items over $5000 must have an accredited art appraisal from a “qualified art appraiser”
3. Estate Tax Liability
2019 Federal = estate valued over $11,180,000
2019 Oregon = estate valued over $1,000,000
4. Equitable Distribution
b. Family distribution, estates
c. Business or partnership dissolution
5. Re-sale Value
How much can I get for this item, and how do I go about selling it?
6. Moving/Damage Claim
If the moving company damaged a work of art, is it repairable and how much will that cost? What is the replacement cost if completely damaged?
7. Bankruptcy and Disillusion of a business – what to do with the assets?
Many Banks are now being presented with significant artwork collections seized from bankruptcies and need help evaluating the collections as well as determining if anything is of significant value, and lastly, what to do with these “assets”? Should you sell them all in an auction or should some pieces be privately sold, and if it is an option to keep any of the works or donate them to charitable organizations and receive a tax break.