Every now and then a client asks about our California appraiser license and certification pursuant to Assembly Bill 527. The regulations of Assembly Bill 527, we explain, were established by OREA (Office of Real Estate Appraisers now called the Bureau of Real Estate Appraisers) and so are only applicable to real estate appraisers. Machinery and…Read More
USPAP: Not just for Litigation Appraisals
Litigation support, from an equipment appraiser’s point of view, often seems like a long discussion about what constitutes an adequate appraisal report –– and that inevitably includes explaining what USPAP is and why it’s important. Of course, the benefits of a USPAP report aren’t limited to litigation purposes: professional appraisal standards benefit everyone in every situation for…Read More
What’s so Fair about Fair Market Value?
When you think about “Fair Market Value” in equipment appraisal reports, what do you think the “fair” part means? We had this discussion not long ago at an appraisal report writing class regarding the new USPAP regulations and the consensus was that the “fair” part of “fair market value” is redundant. Market Value, by definition,…Read More
How Will Dodd-Frank Affect Appraisals?
In this guest blog, Robert Podwalny, FASA, gives an overview of the Appraisal Review and Management (ARM) field of the appraisal profession, explaining why appraisal review is needed, what an appraisal review involves, who is qualified to review appraisals, and the opportunities available in this quickly-growing area of the appraisal profession. Substandard Appraisals One of…Read More
USPAP 2012-2013
UPDATE, March 8, 2012: We got a call this morning from the fine folks at the Appraisal Foundation asking us to remove the link to the free Gold app USPAP publication originally included in this blog, so you will not be able to click through to that. The flip book link was allowed to stay….Read More
Scope of Work for Appraisals
As an equipment appraiser, I can verify that defining the scope of work is a critical first step in any appraisal process. Even before quoting a price on an equipment appraisal, we need to closely define our scope of work. Scope of work is defined by our friends at USPAP (Uniform Standards of Professional Appraisal Practice) as…Read More
Tax-Related Appraisals: Section 6701 & Circular 230
This is the second half of an article on the consequences of the Internal Revenue Service’s new and significant enforcement initiatives that specifically target abusive tax-related appraisals and the individuals who prepare them. Read the first half here in a previous post. Authors are Jay Fishman, FASA, Business Valuation Review Editor and Chairman of the…Read More
IRS Targets Abusive Tax-Related Appraisals
I thought I’d pass along some information about the IRS strategy for Estate Tax Returns and their related appraisal. The moral of the story is to hire a qualified appraiser and save a lot of trouble. Because this article is so long, I’ve broken it into 2 separate posts. The second half will post next…Read More
SBA Loan Appraisals: Machinery & Equipment
The recent passage of the Small Business Jobs Act (H.R. 5297) has galvanized the business loan market. A qualified ASA machinery and equipment appraiser discusses the importance of USPAP compliant equipment appraisals for both the lending institutions and the borrowers in light of bank auditors and examiners who will be inspecting SBA loan files. Read More
Qualified Appraisers, ASA & the IRS
An explanation of IRS standards for qualified appraisers, written by NorCal ASA president Bob Lentz, originally published in the Sept 2010 newletter for the NorCal ASA chapter. Read More
Why You Need a Qualified Appraiser
Why your machinery and equipment appraiser must be an unbiased trained and knowledgeable professional who provides a report supporting an impartial opinion of value based on expert knowledge, adjusted comps and market research, in line with USPAP guidelines, ethics and appraisal procedures. Read More
Proposed Update of Valuation Terms
American Society of Appraisers proposes new Definitions of Value as approved by the Machinery and Equipment Committee and American Society of Appraisers Board of Govenors. In particular, the Fair Market Value in Continued Use definition has been expanded to break out two different approaches to future earnings: Continued Use with Assumed Earnings v Continued Use with an Earning Analysis. Please bear in mind as you read that none of these definitions have been officially accepted and some of the definitions are still being discussed. Read More