Ten Reasons to Have Your Construction Equipment Appraised
With the construction industry being so valuable to the growth of our local economy it can be hard for many construction business owners to understand how having certified equipment appraisals can actually benefit their business. Many business owners feel that unless there is a critical need for a certified equipment appraisal, their money can be better spent on other needs. Little do these owners realize that a certified equipment appraisal can be a huge benefit for their business, even a successful business that is solvent and healthy. Here is a look at ten reasons why your southeast Michigan construction business needs a certified equipment appraisal.
- Business Taxes: Many business owners use depreciation to value their equipment during tax time. This is something that can be done by your CPA, and is acceptable to the IRS. However, if you should be audited by the IRS or if you want to improve your tax standing, it is highly recommended that you have a certified equipment appraisal. This detailed evaluation of your equipment will leave your business looking good under the eyes of the IRS.
- Business Analysis: It’s a lot easier to make good decisions for your business when you have the right data. A certified equipment appraisal will help you decide if you need to replace equipment, if you should buy more equipment, or if you have the right equipment to bid on projects.
- Business Sale: If you are getting ready to sell your business, the first step to the process should be certified appraisals for all of your equipment. A certified appraisal done on all of your equipment, prior to selling your business will give you a more accurate understanding of the value of the assets that will be sold with the business. This allows you to ask the right selling prices, and then support this price during sale negotiations.
- Bankruptcy: If you are looking at filing for bankruptcy because your business has failed, a certified equipment appraisal will give you a solid measure of your business assets that can be shared with your creditors for settlement.
- Dissolution: If you are closing your doors permanently, without selling your business or one partner buys out the other, you need to know the value of your assets. A certified equipment appraisal will help you determine the equitable division of any business assets or to determine the right sale price.
- Divorce: Unfortunately, if you are going through a divorce your business assets are part of the property that must be divided. During divorce proceedings, your business assets are treated the same as your personal assets. It’s important to have a quality certified equipment appraisal to fully understand the value of assets involved in your divorce proceedings.
- Better Insurance: No, this doesn’t mean cheaper insurance, but it does mean that you have a better way to determine exactly what insurance coverage your business needs. Having the right insurance will protect your business should you have an accident.
- Bank Loans: Your bank is going to want to know the collateral that you have available to back a loan. If you are looking at applying for a new business loan, start with a certified equipment appraisal. This will give you an accurate understanding of your assets and will help your banker determine if you can support the loan he’s giving you.
- Charitable Donations: If you are considering a donation of a piece of older equipment to a charitable organization, you will need to know the exact value of the equipment. A certified equipment appraisal will allow you to accurately report the value of any equipment you have donated to charity, to the IRS.
- Estate Planning: A certified equipment appraisal will allow your estate executor to demonstrate the value of both your business and its equipment to your heirs and the government. A certified equipment appraisal will ensure proper IRS reporting after your death as well as equitable distribution of your assets to your heirs.
While it may seem like an unnecessary expense, a certified equipment appraisal can be incredibly useful for your southeast Michigan construction business and your personal affairs. If you are looking for a quality equipment or machinery appraisal in southeast Michigan, R Stout Appraisals is here to help. To learn more about our services or to schedule an appraisal, call us today at (248) 978-8338.