If an appraiser is hired to appraise an apartment building for tax purposes, which USPAP STANDARDS apply?

When appraising an apartment building for tax purposes, the relevant USPAP Standards to consider are Standards 1 and 2.

Standard 1 focuses on the development of a credible appraisal by requiring appraisers to collect, verify, and analyze relevant information. It emphasizes the necessity of using appropriate research techniques and methods to ensure that the appraisal is based on sound analysis.

Standard 2 pertains to the reporting of appraisals. This standard sets forth requirements for how the appraiser must communicate their findings, methodologies, and conclusions in a manner that is clear, concise, and understandable to the intended users of the appraisal report.

In the case of tax-related appraisals, it is essential for both standards to be applied properly. The first standard ensures that the appraisal has been developed according to the necessary analytical procedures, while the second standard ensures that the report meets the prescribed requirements for communication of those findings. This combination is crucial in providing a reliable and defendable appraisal that meets the needs of tax authorities and stakeholders involved.

This is why the choice indicating Standards 1 and 2 is the most appropriate one for an appraisal geared towards tax purposes.