An appraisal is needed to determine the value of the vessel for various purposes. This is used when a vessel is to be donated to an institution and the owner is going to take a tax deduction. The IRS requires an independent appraisal which will give the value of the vessel and the facts as to how that value was determined. This report will be submitted with the owner's income tax to the IRS. An appraisal is also used to determine the value of the vessel for an estate or for the purpose of litigation.