Purpose: To provide appraisals that will enable taxpayers to qualify for income tax deductions on gifts of privately held company stock to charities.

Owners of closely held businesses in the U.S. control over $2.5 trillion in wealth. For business owners with charitable intentions, donations of their stock to tax-qualified charities can result in tax savings large enough so that, when combined with insurance programs, the value of the gifts can be recaptured. In most cases, to benefit from the tax deductions associated with charitable gifts, owners must submit a qualified appraisal.

For gifts of non-publicly traded stock valued over $10,000, a qualified appraisal and an appraisal summary form must be submitted with the income tax return. The appraisal, or valuation, date must be no more than 60 days before the date of the gift. An appraisal is not required as long as the value is under $10,000. However, part of the appraisal summary form must be completed for gifts valued over $5,000.