Why do I need an equipment appraisal

There are no less than twenty good reasons why a Certified
Machinery and Equipment Appraisal is required by Lenders, CPAs,
Attorneys, Business Owners and other interested parties.    For
example, lenders are required to substantiate values to meet the
standards issued by the Small Business Administration (SBA) and Bank
Examiners.  CPAs are required by the Internal Revenue Service to
substantiate equipment values to satisfy the Pension Protection Act of
2000 and AICPA Standards of Value #1.  Attorneys will find that relying
upon a Certified Appraisal when representing a client is the best
approach to take.  The common thread running in all of these instances
is the question: “What is the equipment really worth today?”. 

Answering that question means doing more than relying upon a
depreciation schedule of the assets or guessing at a value by relying
upon the estimation of a non-certified person.  Estimates of value
provided by an equipment dealer or equipment broker may not hold up
the scrutiny of bank examiners, internal auditors, and income tax
examinations.

Other occasions that may require a Certified Equipment Appraisal could include:

  • Buy/Sell Agreements             
  • Cost Segregation Studies
  • Litigation Support
  • 1031 Exchanges
  • SBA loans
  • Tax Planning
  • Insurance Verification Studies
  • Estate Settlements
  • Divorce Settlements
  • Mergers and Acquisitions
  • Retirement Planning
  • Property Taxes
  • Gift Planning
  • Sarbanes/Oxley Compliance
  • FASG 141/42