Accountants and the Financial Profession need Certified Machinery and Equipment Appraisals

How do you currently determine a value?

  • Guess?
  • Rely on book value?
  • Rely on the owner’s word?
  • Rely on some non-certified person’s word?

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).

It is what you need to prevail before the IRS, courts, lenders, attorneys, CPAs and others. In fact, there is a chance that IRS could disallow a filing because there is not a Certified Appraisal Report that substantiates equipment values.

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

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

  1. Converting From C To S Corp – A CPA typically requires an appraisal of the assets.
  2. ESOPS - Initial appraisals must start out with accurate values of tangible assets such as machinery/equipment. Book value is usually not accurate.
  3. Business 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.
  4. Gifting - Requires an appraisal of the items becoming a gift.
  5. Estate Planning - Trusts and Wills require a value of the items.
  6. Liquidations – Need accurate values to effectively and profitably liquidate the assets.
  7. Sarbanes-Oxley - Tangible assets must be valued and substantiated.
  8. Buy Sell Agreements – Partners need to know at the outset how machinery and equipment values will be determined.
  9. Financing – Establishes collateral value. The lender will need to have a certified machinery and equipment appraisal.
  10. Cost Segregation – Equipment values need to be substantiated.
  11. Divorces – The division of property will require an accurate, substantiated value by the court.
  12. 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.
  13. Business Transactions – Buyers and sellers need an accurate value of equipment for allocation of purchase price.
  14. Partnership Dissolution – The partners are splitting the sheets and a total equipment value will be required.

Cost of an Appraisal

The cost of a certified 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.

 

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