This can be negotiated, within reason, and the statements must match. The process allows the identification of intangible assets, including intellectual property and customer related assets and assigns Fair Value to those assets, which can then be amortized over their useful life for GAAP reporting.Īs it is in the transfer of ownership of a company, the IRS (IRC 1060) requires a purchase price allocation statement (Form 8594) to be submitted by both the buyer and seller. An accurate valuation is the foundation for GAAP or IFRS reporting, including the determination of the Fair Value of intangible assets and tangible assets, and associated leases and liabilities. The Financial Accounting Standards Board (FASB) provides guidance on the allocation of all assets and liabilities acquired in a transaction that changes the ownership of the assets. Purchase Price Allocation brings together the valuation of both tangible and intangible assets acquired in a transaction. We can apply the specific financial metrics of your company, to the extent allowed by local law, to insure the property tax payable is right for your business.Īppraisals of Intangible Assets Purchase Price Allocation (ASC 805) An independent appraisal of the real or personal property subject to the ad valorem tax can assist in a tax appeal or issuance of a rendition in negotiation with the local appraisal district. Government entities employ a “Mass Appraisal” technique that may be adequate for the entire population of their district, but may not apply individually, due to specific circumstances of your business. Nearly all states impose a real estate property tax as well. Nearly 2/3 of the US States impose personal property tax on equipment and in most cases inventory as of January 1 of each year. A tangible asset appraisal, which includes buildings, contents and all Machinery & Equipment, and business valuation, can assist the business owner in purchasing the proper amount of insurance coverage to sleep well at night. This should also include business interruption. In the operation of a manufacturing business, it is critical to know the level of casualty insurance to have should a fire or other event occur that destroys the operation of the business. Most commonly, the M&E appraisals are complemented by real estate or intangible asset appraisals, and also can be a component of a business valuation. Our M&E appraisals have been used for bank loans, insurable replacement cost, and property tax purposes, or together with the other appraisal disciplines covered by our staff. Our appraisers have also provided values to small manufacturing companies. Our M&E appraisers, with chemical engineering degrees and more than 80 years combined experience with large, multi-national chemical companies, are particularly skilled at appraising heavy industrial equipment, such as found in chemical plants, oil refineries, pharmaceutical manufacturing, power plants, steel mills, and other large, capital-intensive, manufacturing facilities. The appraisal of machinery and equipment (M&E) has been a key component of the services offered since 1971 by EAC Valuations, the predecessor firm to Sobel Valuations.
#Irc property appraiser professional#
USPAP provides guidance on the required elements of an appraisal report, reporting options, and other pertinent information to ensure the best professional appraisals. Most of our real estate appraisals are completed by Members of the Appraisal Institute (MAI).Īll of our real estate appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), and, if necessary, FIRREA. Our real estate appraisers are seasoned veterans, and are certified general appraisers as required by state Boards of Real Estate and the mandates promulgated by the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA). Determination of Purchase or Sale Price.Allocation of Purchase Price (ASC 805, IRC §1060, IRC §338).Some Common Purposes For a Real Estate Appraisal Are: