Bitcoin Appraisal for IRS

IRS-qualified Bitcoin appraisals for charitable donations (Form 8283), estate tax reporting, and inheritance basis determination. AppraiseItNow appraises Bitcoin holdings, locked or vested Bitcoin, inherited Bitcoin, donated Bitcoin, and estate Bitcoin online and onsite across the US.

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Onsite or Online
USPAP-Compliant
IRS Qualified
DEFENSIBLE, USPAP-COMPLIANT APPRAISAL REPORTS — QUALIFIED FOR THE IRS, INSURANCE AGENGIES, LENDERS, AND MORE.

USPAP-compliant appraisals by best-in-class appraisers

Joe Kattan

Aron Blue

About AppraiseItNow's Bitcoin Appraisal Services

AppraiseItNow provides professional Bitcoin appraisals for a focused set of high-stakes purposes, including charitable donation reporting, estate tax filings, divorce proceedings, and IRS compliance. Bitcoin presents unique valuation challenges compared to other asset classes: its price fluctuates continuously across exchanges, historical transaction records require careful interpretation, and the IRS treats it as property subject to specific reporting rules. Our appraisals address these complexities directly, producing defensible valuations tied to a specific date and time, supported by documented methodology. Bitcoin appraisals from AppraiseItNow fall within our broader cryptocurrency appraisal services, which cover the full spectrum of digital assets. Our mission is to deliver defensible, USPAP-compliant valuations with exceptional speed, professionalism, and client service.

AppraiseItNow serves individual holders, estate executors, CPAs, tax attorneys, and financial advisors who need a qualified, IRS-recognized appraisal for Bitcoin holdings. Because Bitcoin exists entirely on-chain, all appraisals are conducted remotely using transaction records, wallet documentation, and exchange data, with no onsite inspection required. We offer Fair Market Value (FMV) appraisals for various intended uses.

What Types of Bitcoin Do We Appraise?

Bitcoin appraisal is narrower in scope than general cryptocurrency appraisal, but the specific circumstances of each holding can vary significantly. Rather than appraising different "types" of Bitcoin as an asset, AppraiseItNow appraises Bitcoin across a range of holding structures and situations that each carry distinct valuation considerations:

  • Bitcoin held in self-custody wallets (hardware or software)
  • Bitcoin held on centralized exchanges
  • Bitcoin held in custodial accounts or trusts
  • Bitcoin acquired through mining
  • Bitcoin received as compensation or payment
  • Bitcoin subject to restricted access, lost keys, or disputed ownership
  • Fractional Bitcoin holdings (satoshis) requiring precise decimal-level valuation
  • Bitcoin held across multiple wallets or accounts requiring aggregated valuation

Each of these scenarios may require different supporting documentation and methodology to produce a credible, defensible FMV conclusion.

Who Does AppraiseItNow Serve?

AppraiseItNow serves individual Bitcoin holders, estate executors, divorce attorneys, CPAs, and financial advisors who need a qualified appraisal for tax, legal, or compliance purposes. Whether you are a first-time donor or a professional managing a complex estate, our team is equipped to handle Bitcoin valuations at any scale.

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How much does a Bitcoin appraisal cost?

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5-Star Valuation Services, Loved by Hundreds

AppraiseItNow appraised my non-cash donation and exceeded my expectations in every way! They were extremely prompt, incredibly friendly, and remarkably affordable.

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How our Valuation Process Works

1
Appraisal Request
Submit estimate or list of items for our review
2
Quote Issued
We'll share a flat fee quote for your approval
3
Kickoff & Intake
Submit details on all of your items for our review
4
Research & Analysis
We'll conduct detailed research and prepare a written USPAP-compliant report
5
Report Delivery
Delivery of your report and supporting documents (e.g., signed IRS Form 8283) by email

Get an Appraisal for Any Type of Bitcoin

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Get a Bitcoin Appraisal for Any Need

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Frequently Asked Questions on Bitcoin Appraisals

What types of Bitcoin does AppraiseItNow appraise?

AppraiseItNow appraises Bitcoin holdings across a range of situations, including outright ownership, inherited Bitcoin, donated Bitcoin, and Bitcoin subject to lock-up periods or smart contract restrictions. Whether you hold a fraction of a coin or a large position, we can develop a USPAP-compliant Fair Market Value appraisal tailored to your specific purpose.

Are your Bitcoin appraisals USPAP-compliant?

Yes. All Bitcoin appraisals completed by AppraiseItNow follow the Uniform Standards of Professional Appraisal Practice, specifically Standards 7 and 8 governing personal property appraisal development and reporting. Our reports meet IRS requirements for qualified appraisals under IRC Section 170(f)(11) and are defensible for tax filings, legal proceedings, and financial reporting.

What are common reasons someone needs a Bitcoin appraisal?

There are several situations that typically require a formal Bitcoin appraisal:

  • Charitable donations exceeding $5,000, where IRS rules under IRC Section 170(f)(11)(C) require a qualified appraisal attached to Form 8283
  • Estate tax reporting on Form 706 for gross estates above the applicable threshold
  • Divorce proceedings requiring an independent valuation of digital assets
  • Inheritance and basis determination for capital gains reporting
  • Bankruptcy filings or loan collateral documentation

Can you appraise Bitcoin in poor condition, with unknown provenance, or with limited documentation?

Bitcoin does not have a physical condition in the traditional sense, but appraisals can still be complex when documentation of acquisition dates, wallet history, or transfer records is incomplete. Our appraisers work with the information available, sourcing exchange price data and applying accepted methodologies to establish Fair Market Value on the relevant date. If your records are limited, contact us and we can discuss what is needed to complete a credible report.

Can you appraise large collections or multiple Bitcoin holdings?

Yes. AppraiseItNow can handle appraisals involving multiple cryptocurrency positions, including portfolios that include Bitcoin alongside other digital assets. Whether you hold Bitcoin across several wallets or need valuations for multiple donation events in a single tax year, we can scope the assignment appropriately and provide a fixed fee before work begins.

Do you provide online or remote Bitcoin appraisals?

Most Bitcoin appraisals are completed entirely remotely, since the asset exists digitally and the core data sources are exchange feeds and transaction records. For larger or more complex projects, we can coordinate an in-person appraiser anywhere in the US to review documentation or meet with clients directly.

How much does a Bitcoin appraisal cost?

Fees are scope-based and quoted as a fixed price before any work begins, so you know exactly what you are paying before engaging our team. The primary cost driver is the complexity of the holding, including whether lock-up periods or smart contract restrictions require liquidity discount analysis. Contact us for a quote specific to your situation.

How long does a Bitcoin appraisal take?

Most Bitcoin appraisals are completed within 3 to 5 business days. Rush service is available upon request if you have a filing deadline or other time-sensitive need.

Who prepares the appraisal report?

Appraisal reports are prepared by qualified appraisers who meet the IRS definition under Treas. Reg. Section 1.170A-17, including minimum education and experience requirements and regular compensation for appraisal services. Each report is reviewed for USPAP compliance before delivery.

Do you prepare appraisals for IRS Form 8283 (Noncash Charitable Contributions)?

Yes. This is one of the most common reasons clients request a Bitcoin appraisal. When a charitable donation of Bitcoin exceeds $5,000, the IRS requires a qualified appraisal completed no more than 60 days before the filing date, attached to Form 8283 Section B. Importantly, exchange-reported prices do not satisfy this requirement, and cryptocurrency exchanges do not qualify as qualified appraisers under Section 170(f)(11)(E)(ii), so a formal appraisal is required regardless of how readily the price appears to be available.

Do you buy, sell, or broker Bitcoin?

No. AppraiseItNow is an independent appraisal firm and does not buy, sell, or broker Bitcoin or any other cryptocurrency. This independence is essential to producing objective, defensible valuations that meet IRS and USPAP standards.

What information do you need to get started?

To scope your Bitcoin appraisal, it helps to have the following ready:

  • The amount of Bitcoin to be appraised, including wallet addresses or transaction records if available
  • The valuation date needed, such as the date of donation, date of death, or date of transfer
  • The purpose of the appraisal, such as charitable donation, estate tax, or divorce
  • Any documentation of acquisition cost or original purchase records
  • Information about any restrictions on the holding, such as lock-up periods or smart contract conditions

Can AppraiseItNow appraise Bitcoin located anywhere in the U.S.?

Yes. Because Bitcoin is a digital asset, remote appraisals are available to clients in all 50 states with no geographic limitations. For larger or more complex assignments, we can also coordinate an in-person appraiser in any state to assist with documentation review or client meetings.

Will my appraisal be accepted by the IRS, insurers, or courts?

Our Bitcoin appraisals are prepared to meet the qualified appraisal standards under IRC Section 170(f)(11) and Treas. Reg. Section 1.170A-17, making them suitable for IRS submissions including Form 8283 and Form 706. Reports are also USPAP-compliant and defensible for use in insurance claims, divorce proceedings, bankruptcy filings, and court proceedings.

Does the IRS require a qualified appraisal for Bitcoin donations even if the price is publicly available on an exchange?

Yes, and this is a point many donors misunderstand. The IRS explicitly excludes cryptocurrency from the definition of publicly traded securities under Section 165(g)(2), which means Bitcoin does not qualify for the exemption that allows stocks to be valued using exchange prices without a formal appraisal. A CCA memo, CCA 202302012, confirmed that exchange-reported values provide no reasonable-cause exception, so any Bitcoin donation over $5,000 requires a qualified appraisal regardless of how transparent the market price appears to be.

How do appraisers determine Fair Market Value for Bitcoin that has a lock-up period or smart contract restriction?

When Bitcoin or a related holding is subject to a smart contract that imposes a timed release or other transfer restriction, appraisers cannot simply use the spot price from an exchange. Instead, they apply a liquidity discount using accepted personal property methodologies, modeling how a hypothetical buyer and seller would price the asset given the inability to sell immediately. The discount analysis draws on exchange high, low, and 24-hour average price data from multiple platforms as a starting point, then adjusts downward to reflect the impairment, in compliance with IRS guidance under Notice 2014-21 and related CCAs.

What is the 60-day rule for Bitcoin donation appraisals and why does it matter?

The IRS requires that a qualified appraisal for a noncash charitable contribution be completed no more than 60 days before the date the contribution is made and no later than the due date of the tax return on which the deduction is claimed. For Bitcoin donations, this means the appraisal cannot be backdated or prepared well in advance of the gift. Missing this window can result in disallowance of the entire deduction, so timing the appraisal correctly relative to your donation date is critical.

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