How should a gifted asset be valued?

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Gift tax uses the fair market value of the property. Record the date of the gift, the value, and how that value was determined. For hard-to-value assets — such as interests in a private business or real estate — the Form 709 instructions call for a qualified appraisal or a detailed description of the valuation method, so review these with a qualified appraiser and tax professional. A software estimate is not a qualified appraisal.