When you're dealing with tax issues, getting an appraisal for tax purposes can quickly help you to clear up any problems with the value of your equipment.  However, that's not the only reason you should get an equipment appraisal done at that time! Appraisals provide you with a world of other benefits as well, many of which you may not have considered. Here's a quick look at some of the reasons you should get an equipment appraisal when dealing with a tax issue.

5 Reasons to Get an Equipment Appraisal for Tax Purposes

1. To prove value. Is your equipment worth what the book says, what the sale magazine says or what eBay says? It may be none of the above. Your equipment is in a specific condition and has a particular expected useful lifespan that can't be quickly be determined by simply looking at another piece of machinery. It takes years of experience and training to understand the full intricacies of equipment value.
2. To fight a bad appraisal. If you're dealing with a tax issue, there's a good chance it's a bad tax appraisal. Tax assessors need to estimate value on a wide range of items, not just your equipment, and they often do that job badly. Fortunately, they'll virtually always listen to the opinion of a certified equipment appraiser, and if they won't, the appeals board will.
3. To have a record of depreciation over time. How much value has your equipment lost since you purchased it? Knowing this information is vital not only on your tax paperwork, but also to the assets that you have on your books. It's hard to make a solid business decision when your books and balance sheet are not completely accurate, but an appraisal helps you sort out this issue.
4. To get a timeline on replacement. Should you budget to replace that equipment this year, next year or in five years? It's really hard for most people to estimate the remaining useful lifespan of a piece of equipment, but machinery appraisers do it every day. They can also help point out potential repairs that may lengthen that lifespan, buying you precious time to get a little more income before the big investment.
5. To have on hand for future uses. An equipment appraisal gives you proof of value and when prepared by a certified equipment appraiser, uses tested methodologies that will hold up in court, at your financial institution, with your insurance company, when selling machinery and in a number of other situations. By having one on hand that is recent, you can deal with a whole world of potential issues quickly and easily.

Getting a machinery appraisal for tax purposes is an excellent idea, especially when dealing with a tax assessment that was inaccurate. But as you can see, it's not the only good reason for getting an equipment appraisal performed. Knowing the actual value of your machinery gives you a solid basis for any number of business ventures, and having that value calculated by a certified equipment appraiser gives you a strong position for many future issues you may run into. The report that is generated by a certified appraiser will hold up well not only with tax agencies, but also with financial institutions, court systems and any number of other situations.