Appraisals for Accountants
Risk Of Liability Is Not Just Knocking At Your Door...It's Almost Knocking Your Door Down!
More Importantly, The IRS And Others Are Now Demanding
A Certified Appraiser Issue a Certified Appraisal.
The Days Of Guessing Are Over!
Based on the IRS Pension Protection Act of 2006 and Circular 230, the days of guessing or burying the value of capital equipment are over. Furthermore, Standards of Valuation #1 requires reliance upon substantiatedrelative data. In addition, numbers 20, 34, and 63 relate to equipment values. Are you in compliancy and will your equipment values withstand scrutiny?
Every day you are in contact with business owners that need a true and accurate fair market value for their capital equipment.
How do you determine a value?
Guess? Rely on book value? Rely on the owner's word? Rely on some non-certified person's word?
If you rely on guessing, book value, the owner's word or the word of a non-certified person who may have a "hidden" agenda, you are receiving an inaccurate determination of value. Stop for a minute and think about the liability and risk you and your client are taking if you rely on anything other than a Certified Machinery & Equipment Appraisal! After all, the IRS will disallow a value that is not substantiated.
The #1 Secret REVEALED!
The #1 Secret is what so many of your colleagues have proven and relied upon …you can reduce the risk of liability when you rely upon a "qualified" USPAP compliant appraisal by a "qualified" appraiser. Specifically, you can rely with confidence on a Certified Machinery & Equipment Appraisal prepared by a Certified Machinery & Equipment Appraiser (CMEA).
A CMEA is experienced in collecting, substantiating, reporting and determining a value that is consistent with USPAP (Uniform Standards of Professional Appraisal Practice). USPAP, promulgated by the Appraisal Foundation and Congress, is the authoritative source for appraisals.
You can rely with confidence on a determination of value that is substantiated and USPAP compliant. A Summary Machinery & Equipment Appraisal prepared by a CMEA will withstand the scrutiny of the IRS, courts, lenders and others.
15 Reasons Why You And Your Clients NEED A Certified Machinery & Equipment Appraisal
To Eliminate The Risk Of Liability And Possibly Alleviate Penalties
- Converting From C To S Corp – A CPA typically requires an appraisal of the assets.
- 1031 Exchanges - One of the best kept secrets of the IRS. Assets require a valuation for a like-kind exchange.
- 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. Lots of risk and liability!
- Gifting - Requires an appraisal of the items becoming a gift.
- Estate Planning - Trusts and Wills require a value of the items.
- Liquidations - How do you 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.
- 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.