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Ways in Which a Machinery and Equipment Appraiser can Help During Tax Time

March 20, 2013

Everyone’s favorite holiday is just around the corner. That’s right – Tax Day is less than a month away! If you’re still struggling to gather and submit paperwork, remember to add “Call a CMEA” to your list. There are several tax issues with which a Certified Machinery and Equipment Appraiser can help you.

Gifts

If your company gifted a piece of equipment that is worth more than $5,000, the IRS has certain requirements. A CMEA must inspect the piece of equipment to determine its fair market value, and the company that made the gift must attach the appraisal to its tax return.

Cost Segregation

If you are already looking ahead to next year and purchasing a building or improving the one you already have is part of your plans, your accountant might bring up cost segregation with you. This asset depreciation technique divides real estate into several categories, including land, personal property, buildings, and land improvements. Land improvements and personal property are depreciated more quickly than the other categories in order to reduce the business owner’s tax obligations.

Charitable Contributions

Sometimes, companies that want to help their communities donate time and services to a charity. Those services are not deductible, but any non-reimbursed expenses incurred while donating those services are. Talk to your accountant about special rules regarding donations of appreciated property.

Understanding Depreciation

Depreciation has several definitions. When it comes to machinery and equipment appraisers, depreciation means how much an asset has decreased in value since its initial purchase price. Ask a CMEA to help you determine depreciation. He or she will base depreciation on the equipment’s physical condition, its function, or other economic factors.

Looking for a CMEA in your area before taxes are due? There’s still time! Contact us today!

The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: NEBB Institute

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