Why Do I Need an Equipment Appraisal?

There are at least 20 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 on a depreciation schedule of the assets, or guessing at a value by relying on 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