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Appraisals, Donations, and Tax Time

December 25, 2013

Nebb Institute TaxesWith the holidays winding down, it’s time to look ahead to the new year and one of the less popular events — tax time.

When it comes to filing taxes, one of the most overlooked aspects is donations. Donated machinery or equipment with a value over $5,000 requires an equipment appraisal. The IRS has strict requirements in this regard, so a CMEA should be brought in for the appraisal so there are no issues down the road. You do not want issues with the IRS!

Machinery and equipment donations over $5,000 are reported on the IRS 8283 tax form. The 8283 form requires a licensed appraiser’s signature declaring that:

  • They perform appraisals on a regular basis

  • They’re qualified to make appraisals of the type of property being valued

  • They certify that the appraisal fees were not based on a percentage of the appraised property value

  • They understand that a false or fraudulent overstatement of the property value may subject them to the penalty (aiding and abetting the understatement of tax liability)

  • They understand that they may be subject to a penalty if they know that the appraisal is to be used for a refund in a misstated way

  • They affirm that they have not been barred from presenting evidence or testimony by the Office of Professional Responsibility

Taxes can be a real challenge, but even more so if you’re relying on someone other than a qualified CMEA to provide your values. Don’t take a chance. Find a CMEA 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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