Western Equipment Appraisers provide equipment appraisals for 100's of different reasons from taxes to lawsuits, divorces, partnership splits, and gift taxes, these just name a few. The key is having someone that will listen to your needs and get the job done.
Collateral Valuation, Verification & Inspection for Loans. A large portion of our practice involves valuing, verifying and inspecting collateral for banks and other lending institutions. Typically, lenders are looking for an appraisal of orderly liquidation value and fair market value in continued use. Valuations of these types provide the lender with a useful rangeof values to make lending decisions.
Due Diligence and Management Decisions. More and more businesses are insisting on an appraisal for fair market value in continued use as part of due diligence involved in mergers or acquisitions. Such an appraisal provides a detailed listing of the underlying machinery and equipment in an acquisition and their relative values.
Tax Appeal for Business Property Tax. County assessment records can be inaccurate, causing over-taxation. Equipment depreciation, quality rates, and equipment condition can lead to significant annual tax savings to you. Current market conditions also have a large impact on how your property is valued and therefore affect the final assessment. Millions of dollars worth of taxes are reduced annually through the Value Adjustment Board petition process. Call us to investigate how you can join the many other commercial property owners who have substantially reduced their taxes with a professional appraisal.
Insurance. If you or your client have extensive equipment holdings it is prudent to have those assets scheduled out in their insurance policy. In the case of a loss claim, the insured will often need to protect their interests by having an appraisal done after the loss has occurred. Tax Deduction for Charitable Donations. In general, if you contribute property worth more than $5,000, you must obtain a qualified written appraisal of the property's fair market value. The IRS has designated USPAP as the standard qualified appraisals.
Equitable Distribution of Assets in Divorce. The date of the filing of the Complaint for Divorce historically has been the date that assets are valued for purposes of equitable distribution. Usually fair market value is used. If the asset increases or decreases in value due to fluctuating market conditions, the gain or loss is realized by both parties at the time of the actual distribution or sale of the asset. However, when an asset has increased in value due to the sole efforts and industry of one party, the gain usually will be awarded to the person responsible for the increase in value. Whatever the case, since the matter may likely be subject to a legal review, it is prudent to obtain a USPAP appraisal.
Estate Taxes and Step-up in Basis. In an inheritance situation, the value of equipment and machinery in the estate must be adjusted from book value to fair market value as defined by the IRS, of an appreciated asset for tax purposes upon inheritance. With a step-up in basis, the value of the asset is determined to be the higher market value of the asset at the time of inheritance, not the value at which the original party purchased the asset. The IRS now recognizes USPAP as the standard qualified appraisals.
FAS 141 and 142 Appraisal. The Financial Accounting Standards Board (FASB) has issued two financial accounting standards: FAS 141 and FAS 142. These standards were established 1) to better reflect investments made in acquired companies, and 2) to provide additional information regarding acquired intangible assets. FAS 141 mandates that all assets acquired and liabilities assumed are valued at their fair value. FAS 142 states that the value of economic good will is volatile and maybe subject to impairment. As such, value should be tested annually, at a minimum.
FAS 157 Fair Value Accounting Appraisal. FAS 157 became effective for entities with fiscal years beginning after November 15, 2007. It is intended to bring clarity on the definition of fair value, which is defines as “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” FAS 157 only applies when another accounting rule requires or permits a fair value measure for that item. While FAS 157 does not introduce any new requirements mandating the use of fair value, the definition as outlined is based on the asset’s bid price rather than its asking price, regardless of whether the entity plans to hold the asset for investment or resell it later. FAS 157 emphasizes that fair value is market-based rather than entity-specific. Other Reasons for an Appraisal Include: Eminent domain 1031 exchanges Loss claims litigation Estate settlements Partnership dissolution Foreclosures / bankruptcy / restructuring Retirement planning /trust planning "C" Corp. to "S" Corp. conversion
See the category that fits you best to learn more. Attorney, Accountants, CPA's. Banks/lenders or the most important to all the business owner.
