Continue Business and goodwill - certified appraisal or EOV?

[WITAXLADY]

Looks like the Estate beneficiaries may be switching as the current CPA is asking for all the prior depreciation lists and not accepting the EOV of equipment - estimate of value from one of the most highly regarded in the field.. says overvalued.

1- is that their job? to question the EOV?

2 - Do the bene's need to get a certified appraisal or can they use the EOV? - about $600,000 of equipment only

5 cranes, trucks, etc - If anything it is undervalued!

Plus real estate, etc comes to $900,000

I thought - in my opinion that for less than a million the EOV should suffice..

Certified maybe if it was 6-10 million but for a long list and $600,000 and pictures -

comments? please.

Thank you

Darlene

[DANRVAN]

22 hours ago, WITAXLADY said:

certified appraisal or can they use the EOV? - about $600,000 of equipment only

For that amount, I would request an appraisal for a number of reasons.

Just curious if the EOV was done by XXXX Business Services who came up with the goodwill in your other thread concerning this case?

The business service showed a complete lack of competence by assigning goodwill in that case, so the CPA for the estate should have reservations about accepting any valuations from XXXX .

Unlike goodwill which requires an appraised value under one of three prescribed methods, there is no regulatory requirement that the fmv of the equipment be determined by a certified appraiser. 

However, the CPA needs to take a reasonable position that the assets have been properly valued.  It is a matter of professional judgment whether an EOV or appraisal is appropriate.   An EOV is merely an estimate where as an appraisal includes documentation as to what similar assets are actually selling for.  

 

23 hours ago, WITAXLADY said:

5 cranes, trucks, etc - If anything it is undervalued!

The executor or PR has a fiduciary responsibility to to account for the assets of the estate.  For an estate  of that sized the cost of an appraisal is well justified.

 

[DANRVAN]

17 minutes ago, DANRVAN said:

.  For an estate  of that sized the cost of an appraisal is well justified.

Awhile back I worked with a cheapskate PR who drug her feet in hiring an appraiser for $150,000 of equipment in her dad's $2 million estate,  ended up costing only $850.

[WITAXLADY]

thx - where at? what name?

 

[WITAXLADY]

goodwill was not in there..

Now beneficiary came thru and said equipment was only worth $54,000 so I recommended an appraisal!! I cannot see the cranes etc being only worth that much - I would not touch that.. The $900,000 is only the business, not the entire estate!

also if the business is closed 12/31/20 - can the estate be closed then as well?

Thank you so very much,

Darlene

 

[DANRVAN]

7 hours ago, WITAXLADY said:

also if the business is closed 12/31/20 - can the estate be closed then as well?

That is a question for the estate attorney, do they have one?

 

7 hours ago, WITAXLADY said:

Now beneficiary came thru and said equipment was only worth $54,000

 

On 12/18/2020 at 3:55 PM, WITAXLADY said:

Looks like the Estate beneficiaries may be switching as the current CPA

Sounds like this might be a good engagement to stay away from.