If you gave a piece of machinery or equipment to another person or company during 2011 and received either nothing in return or a payment of less than the property’s value, you gave a gift under the IRS tax code definitions and that gift is subject to a gift tax. Gift taxes are usually paid by the gift giver rather than the gift receiver. There are some types of gifts that are not subject to the gift tax, such as gifts from spouse to another, a charitable gift, and a gift to help with educational expenses. If you are not sure whether your gift requires payment of a gift tax, make sure you speak with your accountant. If your accountant determines that you are responsible for a gift tax, the next step is to hire a certified appraiser.
Ask the appraiser to determine the fair market value of your gift, which is what the gift would sell for between a willing seller and a willing buyer. Submit this appraisal report with your tax return to the IRS. Make sure you include the date the gift was given and the name of the recipient.
Taxes are due in just days. If you still need to hire a certified machinery and equipment appraiser, the NEBB Institute can help you find one in your area.
The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.
By: NEBB Institute
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