Tax Professionals FAQ
Here are questions tax professionals typically ask when inquiring about our services:
Why would a client of a tax professional need a certified appraisal?
A tax professional’s client would require a certified appraisal for several reasons:
- 1031 Exchanges
- Converting from C-Corp to S-Corp
- Cost Segregation (in the case of clients with real estate)
- Donations/Gifting-The Pension Protection Act of 2006
- GASB 34 (Government agencies are required to value infrastructure assets on their financial statements)
- Property Tax Assessment
Why would a tax professional need to recommend a CMEA for his client?
Tax professionals are well versed in determining value; however, for tax filings machinery and equipment values based on “book values” and “net book values” are insufficient and will cause serious problems with the IRS. The team at Capital Machinery and Equipment Appraisals specializes in assessing the “fair market” and “fair value” of assets, the value required when reporting what machinery and equipment is worth.
Why would my client need a Capital Machinery and Equipment Appraisals prepared report? Can’t he just look up the book value himself?
Book values are often outdated and unreliable and tax authorities, specifically the IRS, requires market value for most filings. False values may hurt your reputation or worse, cause you and your client future issues. You owe it to yourself and your client to find out exactly how much the machinery and equipment is worth.
At Capital Machinery and Equipment Appraisals, we understand how important a substantiated certified appraisal is to your clients. Our certified reports are prepared by someone who knows how to do it, a CMEA, and who follows a code of ethics to ensure it will stand up to the highest scrutiny.
A CMEA prepared report explains the approaches to value, reflects the current market conditions, and contains the substantiation that a USPAP report requires including photographs, when available.
The USPAP (Uniform Standards of Professional Appraisal Practice) was promulgated by the U. S. Congress and is accepted around the world as the authoritative source for machinery and equipment values.
What are Capital Machinery and Equipment Appraisals’ qualifications?
Kevin Scott, CPA, MBA, CMEA is the founder and owner of Capital Machinery and Equipment Appraisals. He has extensive experience in deriving machinery and equipment values, litigation support, pre-audit planning, reconstructive accounting, turnarounds, and management advisory services regarding acquisition and divestiture options.
Mr. Kevin Scott is affiliated with the NEBB Institute (NEBB), and American Institute of Certified Public Accountants (AICPA).
Do you follow any code of ethics?
Yes, read about our code of ethics here.
Will a certified report prepared by Capital Machinery and Equipment Appraisals stand up to IRS and court scrutiny?
Yes. A certified report prepared by our professional CMEA team is substantiated and irrefutable. It is written in compliance with the Uniform Standards of Professional Appraisals Practice (USPAP).
What information is included in a certified appraisal report?
In order to be USPAP compliant, a certified appraisal report includes specific information about the subject property. These facts will withstand scrutiny by any interested party, including the IRS, lenders, attorneys, and members of the judiciary system.
A certified report prepared by Capital Machinery and Equipment Appraisals will include the following defensible information regarding the subject of your client’s appraisal:
- Summary of facts
- Scope of work
- Degree to which the property is inspected or identified
- Extent of research into the physical or economic factors that could affect the property
- Extent of data research
- Type and extent of analysis applied in arriving at opinions or conclusions
- Depth of on-site inspection
- Overall condition of equipment
- Intended use
- Definitions of conditions
- Methods of evaluation
- Sources contacted
- Final value summary and reconciliation
- Appraiser’s certifications and qualifications