Skip to content

Do-It-Yourself Appraisals Are a Bad Idea

July 16, 2014

NEBI DIYThere are many reasons why business owners hire licensed appraisers to handle their machinery and equipment appraisals. A certified appraisal, which only a licensed appraiser can perform, is not only USPAP-compliant, but it will stand up to scrutiny by peers, the IRS, and the courts. More important than any of that, however, is that a certified appraisal will be accurate and properly represent the value of whatever’s being appraised.

One business owner recently learned this lesson the hard way. Todd Jessep, owner of an Atlanta restaurant, decided to close down the business and retire. He sold off all of the restaurant’s assets, including a massive grill that he’d purchased a few years earlier.

When the equipment appraisal came in, Jessep disagreed with the figure quoted for the grill, and instead of speaking to the appraiser and making his case, simply disregarded the official appraisal report and did his own. The highly inflated numbers tipped off the IRS, and now Jessep’s retirement is on hold as he slogs his way through an ugly audit.

Don’t let this happen to you. If you need an appraisal done, hire a certified appraiser. And if you disagree with any of the numbers, talk it out. It’s a lot easier than talking to the IRS.

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

 

Comments are closed.

%d bloggers like this: