Year-End Tax Strategies: Appraisals You Need Before December 31st

As the calendar winds down, smart homeowners and investors are thinking about tax optimization. Several appraisal-related strategies have hard December 31st deadlines.

1. Charitable Donation of Real Property

Donating property (or a partial interest) to a qualified charity can provide a significant tax deduction. However, the IRS requires a Qualified Appraisal completed no earlier than 60 days before the donation and no later than the tax return due date.

If you're planning a December donation, the appraisal should ideally be completed by mid-December to allow time for legal paperwork.

2. Conservation Easements

Granting a conservation easement on land with scenic, environmental, or agricultural value can yield substantial deductions. These require a "before and after" appraisal showing the value given up. The easement must be recorded by December 31st.

3. Annual Exclusion Gifting

The 2025 annual gift tax exclusion is $18,000 per recipient. If you're gifting fractional interests in real estate to family members, having a current appraisal supports the gift value reported to the IRS.

Don't Wait Until the Last Week

Appraisals take time—typically 1-2 weeks from inspection to report delivery. If you need a year-end appraisal, reach out in early December at the latest.