Our written assessments are typically used for insurance, estate planning, donation and current market valuation. They meet the requirements of private collectors, asset managers, lawyers, public institutions and corporations. They are prepared in accordance with USPAP standards as well as new government standards.
It is advantageous to hold an appraisal in the case of insurance coverage, filing a claim or for shipping or moving property. In this way, the fixed value of the property in question will avoid an overload of the insurance rate or an incomplete reimbursement for the loss or damage of the property.
When you donate to a registered charity, you can get a tax credit of up to 75% of the fair market value of the gift. If the deduction is greater than $1000, you must provide this type of assessment to the Canada Revenue Agency. Taxes on profits must be paid on the difference between the present value and the price at the time of purchase.
Donation of certified cultural property
Donations of certified cultural property bring the most interesting tax advantages. They imply an exemption from tax on capital gains realized on the disposal of cultural property. You can claim up to 100% off your net income. Only one assessment of fair market value is required if the gift is equal to or less than $20,000.
If the value is higher, you will need to provide two evaluations, prepared independently of the other. Assessments must follow the format guidelines established by the Department of Canadian Heritage – Canadian Cultural Property Export Review Board.
If the cultural property is not certified, the donation is considered a regular gift and you will receive an official donation receipt based on fair market value. However, you will not receive the same tax benefits as a certified cultural property.
Regardless of whether the cultural property is certified or not, a fair market value assessment will be required for gifts with a value equal to or greater than $1,000.