Other Reasons to Have a Certified Equipment Appraisal in Michigan
We talk a lot about the importance of having a certified equipment appraisal for business related reasons, like your taxes, a business valuation, the sale of your equipment, or getting a loan. The normal, everyday business stuff. But there are a number of other reasons why you would want to have a piece of equipment appraised in Michigan, by a certified Michigan appraiser. With so many questions being asked of individuals over every little financial transaction, it’s important that you get a certified appraisal if you are making any sort of financial decision that has equipment involved.
If you are planning on using a piece of equipment or even a vehicle as collateral for a personal loan, it’s important that you have a certified appraisal of the equipment. The reason for this is fairly similar to the reason for getting a certified appraisal for a business loan – you want to have a true estimate of the value of your equipment, so that you can get the most money at the lowest rate possible. Many banks will use book values for equipment to determine its value. This can be detrimental to your loan amount if the equipment book value is less than the appraised value. You may end up getting a smaller loan than you need. If you have a certified appraisal in hand, you can be sure that your loan officer will know exactly what your collateral is worth and how much money to loan you.
Trusts and Gifting
In the case of trusts and gifting equipment, the purpose for acquiring a certified appraisal has to do with taxes. If you are setting up a trust as a way to protect assets and distribute them to your family at the time of your death, your trust will need to have a good value of its worth for the purpose of estate taxes. When you pass, the asset that you transfer to the trust and then to your family or friends will need to have a solid value so that your family will be able to properly account for the equipment in their taxes.
The same is true with gifting, and we see this often when parents gift a classic car or antique farm equipment to a child. If that child is an adult, they will need to pay taxes on any gift that is more than a certain amount. Getting a certified appraisal before you gift equipment to a friend or family member will allow them to know exactly how much to report on their taxes.
This is an unfortunate time to have to think about getting an equipment appraisal. However, we do see this fairly often. If a couple has some large equipment type assets (vehicles, boats, farm equipment, etc.), it’s important that these are properly appraised so that assets can be split fairly between the parties. Asset value during divorce can also be a way for the courts to determine things like child support and spousal support.
While more commonly used for business related functions, equipment appraisals do have a place in your personal life. Whether you are selling a classic car or setting up a trust, equipment appraisals are important to helping value these assets.
For More Information on Why You Need a Certified Equipment Appraisal in Michigan
If you have a personal piece of equipment you need appraised, R Stout Appraisals is your expert in certified equipment appraisals in Michigan. To schedule an appointment or to learn more about equipment appraisals, contact us today at (248) 978-8338.