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Gift Taxes and Certified Appraisers

April 16, 2014

NEBBI GiftAround this time of year, we don’t really think too much about giving gifts. Except perhaps an Easter basket. But as a business owner, here’s something you might not be aware of — if you gave a piece of machinery or equipment to a person or company during the year and received nothing in return — or a payment of less than the property’s value — as far as the IRS is concerned, you gave a gift. And that gift is subject to a gift tax.

If you gave the gift, the taxes are usually paid by you and not the person or company who received it. Some types of gifts are not subject to the gift tax, such as gifts to a spouse, gifts to charity, and gifts to help with educational expenses. If you’re not sure whether your gift requires paying a gift tax, be sure to check with your accountant. If it turns out you are responsible for a gift tax, the next step is to hire a certified appraiser.

The appraiser will prepare an appraisal report in which he or she has determined the fair market value of your gift. Submit this appraisal report with your tax return, and be sure to include the date the gift was given and the name of the recipient.

This year’s tax season may be over, but it’s never too late to start planning for next year. If you need a certified machinery and equipment appraiser, the NEBB Institute can help you find one.

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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