Accountants, CPAs and the Financial Profession need Machinery and Equipment Appraisals

Are you compliant and will your equipment values withstand scrutiny?

Based on the IRS Pension Protection Act of 2006 and Circular 230:Standards of Valuation #1 requires reliance upon substantiated relative data.In addition, numbers 20, 34, and 63 relate to equipment values.

How do you currently determine a value?

Guess?

Rely on book value?

Rely on the owner’s word?

Rely on some employees percieved knowledge?

Our appraisals are an accurate, irrefutable, defensible value of machinery and equipment. It is a report consistent with the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by Congress.

It is what you need to prevail before the IRS, courts, lenders, attorneys, CPAs and others.

If the appraisal report you obtain is not USPAP compliant, it is not a “qualified” appraisal prepared by a “qualified” appraiser pursuant to the Council of Foundations, IRS, or others and it will not hold up to scrutiny with the IRS, courts, or lenders.

15 Reasons Why a Machinery & Equipment Appraisal eliminates risk of liability and possibly alleviates penalties

Converting From C To S Corp – A CPA typically requires an appraisal of the assets.

ESOPS - Initial appraisals must start out with accurate values of tangible assets such as machinery/equipment. Book value is usually not accurate.

Valuations - Book value is probably not accurate and usually different from Fair Market Value. If the machinery/equipment is not valued properly, the entire business valuation is skewed thus risk of liability.

Gifting - Requires an appraisal of the items becoming a gift.

Estate Planning - Trusts and Wills require a value of the items.

Liquidations – Need accurate values to effectively and profitably liquidate the assets.

Sarbanes-Oxley - Tangible assets must be valued and substantiated.

Buy Sell Agreements – Partners need to know at the outset how machinery and equipment values will be determined.\

Financing – Establishes collateral value. The lender will need to have a Certified Machinery and Equipment Appraisal.

Cost Segregation – Equipment values need to be substantiated.

Divorces – The division of property will require an accurate, substantiated value by the court.

Property Taxes - An excellent tool to prepare for a governmental authority to reduce and substantiate equipment values or substantiate the equipment is no longer owned by your client.

Business Transactions – Buyers and sellers need an accurate value of equipment for allocation of purchase price.

Partnership Dissolution – The partners are splitting the sheets and a total equipment value will be required.

IRS – The Pension Protection Act of 2006 requires a substantiated and certified equipment appraisal of the equipment.Cost of an Appraisal

The Cost

The cost of a machinery & equipment appraisal varies depending on the number of items needed to be appraised. After we have a conversation and receive a depreciation schedule or detailed asset list, we will be able to quote you a fee for the appraisal