IRS Casualty Loss and Common Errors

This three-hour panel discussion covers IRS casualty loss requirements and common appraisal errors encountered in federal tax matters. The course is organized in three parts. Part A addresses IRS Publication 547, including the definitions of casualty, disaster, and theft losses, the documentation required to support claims, safe harbor methods for determining post-casualty value, and the role of adjusted basis and fair market value in calculating deductible losses. 

Part B is a panel discussion on common errors observed in appraisals submitted to the IRS, covering topics such as fair market value standards, discounted cash flow analysis, sales comparison, highest and best use, extraordinary assumptions, independence and ethics, and the use of comparable sales data.

Part C examines recent U.S. Tax Court cases involving conservation easement valuations, including judicial critiques of valuation methodologies and penalties for gross valuation misstatements. 

The IRS panelists are Lead Appraiser Ray Krasinski, MBA, MAI, AI-GRS, ASA, IFA, RAA, GAA, and Frank R. Molinari, SRA, CVA, Manager of Engineering & Valuation within the IRS Large Business & International (LB&I) Division. Nicholas D. Pilz, MAI, SRA, AI-RRS of Edge Realty Advisors serves as moderator. The seminar is jointly sponsored by the East Florida, Gulf Coast Florida, South Florida, and Northeast Florida Chapters of the Appraisal Institute and will be offered in person and virtually.