17 Reasons Why You or Your Clients May Need a Certified Machinery and Equipment Appraisal
You have probably needed a machinery and equipment appraisal more than once but didn’t know it. Here are 17 instances in which you should probably get a Certified Machinery and Equipment Appraisal to help reduce your risk of liability.
- Financing/SBA Loans – Establishes collateral value. The lender will need to have a Certified Machinery and Equipment Appraisal.
- 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.
- Converting From C to S Corp – A CPA typically requires an appraisal of the assets.
- 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 that 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 appraisal of the equipment.
- Mergers & Acquisitions – Buyers and sellers will need a accurate value of the machinery and equipment being purchased or sold.
- Insurable Value – Insurance agencies and business owners need an accurate value of the machinery and equipment being insured.
- GAAP and IFRS Reporting Purposes – Generally Accepted Accounting Principles and International Financial Reporting Standards.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading
Appraisals Are Important and an Arizona Controversy Proves It
Exiting Your Business? Get an Appraisal
The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal