IRS The Internal Revenue Service (IRS) and the courts that hear its cases prescribe their own appraisal practices and procedures. While the appraisal theory behind IRS appraisals is mostly the same as any other appraisal, failure to comply with IRS specific procedures can result in the disqualification of an appraisal and a loss of essential support for a tax stance. Federal Appraisal, LLC provides IRS appraisals for both taxpayers and the IRS. Federal Appraisal, LLC provides numerous services to assist property owners in managing the various taxes and audit issues that impact real and personal property, including: Purchase Price Allocation Studies Cost Segregation Studies Transfer Taxes Gains Taxes Income Taxes Estate & Gift Appraisals and Consulting Impairment Studies Federal Appraisal, LLC has solutions for the following uncommon issues impacting real property: 1031 Like-kind Exchanges Bargain/liquidation purchases/sales Barter agreements Before & after tax cash flow & income forecasts Before & after tax returns & yields studies Below market rate loan from parent Business Values Casualty/losses Charitable contributions/Gifts Damages estimates Depreciation & cost segregation property Due diligence services Easements Exchange basis FASB 141 / 142 Fixed asset registers Foreclosure/recapitalization GASB 31 Gift tax appraisals Goodwill High basis / low value reorganization Impairment studies Incorporation Increased basis in property prior to disposition Intangibles Landmark easement contributions Litigation support & expert testimony Portfolio & mass appraisals Private REIT’s Real property tax reviews REIT issues Sale/lease backs & LILO’s Self-managed real estate 401k’s Structured leases Synthetic leases Tax estimations & projections Tax shelters Useful life studies Valuation management & audits Valuation/real estate study reviews See our Asset & Property Type page for more information.

Governmental Activities and Urban Renewal Appraisal and appraisal consulting requirements vary significantly from government agency to government agency. While the variances are often simple, the failure to meet the requirements can lead to critical non-compliance. The non-compliance may be non-recoverable and often cost thousands of dollars, but could cost tens to hundreds of thousands of dollars. Federal Appraisal offers expert appraisal and appraisal consulting services for many of the major government agencies. Regulated & Deregulated Industries Governments regulate some industries, energy, telecomm, water, rail. The appraisal of regulated businesses and assets is as specialized as the values and disputes are large. Energy Industries, Regulated & Deregulated Utilities and Infrastructure Power Plants and Electric Utility Properties Some examples of governmental agencies and activities we serve are: IRS The Internal Revenue Service (IRS) and the courts that hear its cases prescribe their own appraisal practices and procedures. While the appraisal theory behind IRS appraisals is mostly the same as any other appraisal, failure to comply with IRS specific procedures can result in the disqualification of an appraisal and a loss of essential support for a tax stance. Federal Appraisal, LLC provides IRS appraisals for both taxpayers and the IRS. Federal Appraisal, LLC provides numerous services to assist property owners in managing the various tax and audit issues that impact real and personal property. HUD The Federal Housing and Urban Development Agency (HUD) prescribes its own appraisal procedures and its own appraisal formats. While the appraisal theory behind the HUD appraisals is the same as any other appraisal, failure to comply with HUD’s own procedures and formats can result in the disqualification of an appraisal. Property Tax Assessment & Appeals There are numerous occasions where the value of a property is related to taxes. Each taxing situation requires special appraisal and consulting considerations. The considerations might be a specialized appraisal for cost segregation, depreciation and income tax. Another might be a explanation and justification fora divergence from the purchase price basis for a transfer or gains tax calculation. Others pertain to tax position, basis or feasibility, as with impairments, structured leases, barter agreements, gifts and estates. Each taxing situation requires appraisal and consulting experience in order to maximize taxing goals. Federal Appraisal, LLC specializes in providing appraisals for tax issues. GSA The General Services Administration of the federal government handles the real estate acquisition and leasing for most of the federal agencies. They have special biding, contracting and reporting requirements. While the requirements are easy enough to meet, the mismanagement of the requirements could add substantial delays to a project. SEC & Investor Relations Federal Appraisal, LLC can provide any of the real estate appraisals and valuation reporting support required by the Securities and Exchange Commission(SEC). Whether its SEC reporting requirements to compliance with the appropriate accounting, tax and audit reporting procedures, or it’s a special issue reporting requirement, Federal Appraisal, LLC can help. Mark to Market Federal Appraisal, LLC provides “Mark to Market” Appraisal Services as required by the Government Accounting Standards Board (“GASB”) new rule, Statement52. The rule requires state and local government endowment funds that hold land and other real estate as investments to report the asset or liability at fair value beginning next year. When real estate is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market. Currently, governments report such assets and liabilities at historical cost. Urban Renewal Urban renewal is a process where privately owned properties within a designated renewal area are purchased or taken by eminent domain by a municipal redevelopment authority, razed and then reconveyed to selected developers who devote them to other uses. Federal Appraisal LLC has worked with a number of cities and governmental agencies who have had long-term visions of revitalizing cities and towns in need of renewals. Appraisals and consultation is provided to these organizations for their city planning needs. Appraisals for a wide variety of needs have been performed in order for these cities to make the best decisions to bring more economic development to these once deteriorating urban areas, driving demand and assimilating new communities.  Appraisals for due diligence, eminent domain, litigation, and other consulting is commonly performed for these purposes. Appraisals for Condemnation and Eminent Domain

Appraising for Property Tax Assessments and Appeals Given that property taxes are often one of the highest expenses of property ownership, property taxes need to be managed intensely.  Unlike income taxes, which have national rules, property tax procedures are local and vary significantly.  That variance affects how to appraise and appeal taxes.  Federal Appraisal has been managing property taxes and appraising for property tax assessments purposes for more than 3 decades.  Appraisals for property tax assessment are not like appraisals written for other purposes.  In fact, appraisal practices in one taxing jurisdiction may not apply in other jurisdictions. Minor missteps can add up to millions of dollars in taxes. Whether our clients are setting an assessment, negotiating a PILOT, or litigating a property tax appeal, Federal offers specialized appraisal service for property taxes, across the county.  Federal routinely appraises general commercial property, special real property, and special personal property for property tax assessment and appeal purposes. Our appraisers regularly testify to their property tax appraisals. Our property tax services span the country, in both regulated and deregulated utility states, for the assessment of utility and power plant properties. Our services include valuation work in support of property tax forecasting and PILOTs.