Accountants

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?  What value definition is appropriate for your client’s needs and situation?

• 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, what are the Risks?

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!

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).  A Summary Machinery & Equipment Appraisal prepared by a CMEA will withstand the scrutiny of the IRS, courts, lenders and others.

15 Reasons Why Accounting Professionals Need A
Certified Machinery & Equipment Appraisal To Eliminate The Risk Of Liability And Possibly Alleviate Penalties

1. Converting From C To S Corp – A CPA typically requires an appraisal of the assets.
2. 1031 Exchanges – One of the best kept secrets of the IRS. Assets require a valuation for a like-kind exchange.
3. ESOPS – Initial appraisals must start out with accurate values of tangible assets such as machinery/equipment. Book value is usually not accurate.
4. 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!
5. Gifting – Requires an appraisal of the items becoming a gift.
6. Estate Planning – Trusts and Wills require a value of the items.
7. Liquidations – How do you effectively and profitably liquidate the assets?
8. Sarbanes-Oxley – Tangible assets must be valued and substantiated.
9. Buy/Sell Agreements – Partners need to know at the outset how machinery and equipment values will be determined.
10. Financing – Establishes collateral value. The lender will need to have a Certified Machinery and Equipment Appraisal.
11. Cost Segregation – Equipment values need to be substantiated.
12. Divorces – The division of property will require an accurate, substantiated value by the court.
13. 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.
14. Partnership Dissolution – The partners are splitting the sheets and a total equipment value will be required.