Dave: Tax Question About Deductibility Of Appraisal

[Hoc]

Dave, I was just thinking about this. The IRS requires an appraisal in order to deduct more than $5,000 (I think) in value of a timeshare donated to charity. I know that the appraisal is not deductible as part of the charitable donation, but doesn't it fall under the provision allowing deductibility of fees paid for the preparation of taxes? If it's an ordinary and necessary expense in order to obtain a fair deduction, it might be considered that way.

Just curious -- doesn't apply to any real world transactions at this time.

 

[Dave M]

Yes, the appraisal fee is deductible, subject to the two-percent of adjusted gross income (AGI) limitation, as an itemized deduction on Schedule A (Form 1040).