Transfer of property for IRS reporting is at Fair Market Value as of a specified date
Charitable Non Cash Contribution/ Gift
Non-cash donations exceeding $5,000 will need to be performed by a qualified appraiser.
IRS Form 8283 list some of the requirements to be considered a qualified appraiser. A qualified appraiser is defined by IRS Form 8283 Instructions as someone who prepares appraisal reports on a regular basis and is qualified to prepare appraisals of the property being valued. To acknowledge the IRS 8283 form requirements and monetary penalties for over-stating the value, a signature by the appraiser is required on the form. The IRS recognizes qualified appraisers as the individuals with the American Society of Appraisers (ASA) designation in their title, of which I am an accredited member in good standing. For reporting to the IRS. IRS Form 8283 with the appraiser’s signature will be included with the narrative report.
MACRS depreciation cost study for IRS reporting is to identify and differentiate (segregate) the property qualifying for accelerated depreciation as Section 1245 from the Section 1250 property and estimate the costs of the property into the appropriate federal tax life classifications. For an existing structure, the cost estimating method used in the analysis would be a Detailed Engineering Cost Estimate Approach. A field survey of the building components will be estimated by physical measurement and actual count. For a cross check, take-off quantities can be obtained from architectural as-built drawings designed by the building architect/engineers.
The scope of work for this type of an assignment varies based on the usage or building type of the subject property and the age of the improvements. Costs estimates for the building and site improvements will be developed utilizing R.S. Means Square Foot Costs guide as the primary source. Costs for specialized items will be verified with local suppliers and contractors. Replacement costs for the improvements are broken down by their sub-assemblies that can be separated into the appropriate asset classification.
Internal Revenue ACRS cost segregation studies are complex and requires several data input of information and documentation. A certified real estate appraisal and a registered land survey are sometimes required in the sales transaction will be integrated with the cost survey. Cost estimates have other uses. Such as; depreciated replacement costs on special purpose buildings to determine market value for insured policy limits and real property tax assessment.
Similar to Estate valuations, the cases among the associated parties can be contentious. These scenarios require special interaction between the appraiser and property contacts.
Providing Market Value in Use, Orderly Liquidation Value and Forced Liquidation Value for pledged operating business assets.
Property Tax Assessment / Ad Valorem
Providing assistance to state and local taxing authorities in determining market value for personal property tax assessment of business assets. Personal property versus real property assessments can be appealed. I have assisted taxing authorities and property owners in identifying and determining valuations separate disputes.
Large inventory of finished goods, manufactured products, out sourced components, WIP, wholesale/retail materials, OEM, NOS parts.
John Marcus, ASA is available for presentations as a guest speaker on the various subjects regarding equipment and technical specialties valuation.
Machinery & Equipment Appraisals
50% of our engagements our enterprise valuations. We work with all of the associated appraisal disciplines. The business valuators generally are the lead for the valuation assignment. We are there in support of the intangible asset appraisers and real property appraisers communicating with the client and/or the subject management.