Consider the following two factors:
1. What is the intended use of the appraisal and who will be using it?
2. What level of assurance do you want?
If the purpose of the appraisal is to send the report to the IRS, an Appraisal Report is required because it meets the guidelines established under IRS Revenue Ruling 59-60. This type of appraisal is used for filing an estate / gift tax return, ESOPS, charitable contributions and calculation of built in Gain for S Corporation election or any tax matter that will be brought before the IRS.
If the subject report is to be used by the court, in litigation or divorce proceedings, we highly recommend a Complete Appraisal.
You should also be aware of increased scrutiny by the IRS of appraisers and the reports they generate. The IRS follows the guidelines established by the Pension Protection Act of 2006 for "qualified appraisers and qualified appraisals." This means, who prepares your business appraisal, is just as important as who will use it.
National Equipment Appraisal's reports are accepted by the IRS, banking regulators and the courts.
Level of Assurance:
The level of assurance is greatest with a Comprehensive Business Appraisal, less so with the Value Calculation and Market Report and least with the Broker Opinion Letter. Our experience shows that business owners who have relied on our Comprehensive Business Appraisal and we have subsequently taken their companies to market sell faster than industry averages by about 40%.
Only you can determine the level of assurance that is best for your situation. Call National Equipment Appraisal before you engage because our advice may save you time, money and reulatory oversite recommendations in the future.