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

Energy Industries, Regulated & Deregulated Utilities and Infrastructure Regulated & Deregulated Industries Federal Appraisal LLC is a nationally recognized leader in the appraisal of the Energy Industries, Regulated and Deregulated Utilities, and Infrastructure.  We are the leading appraisal experts for: Power Plants, in regulated and deregulated states All technology or type Railroad Companies Utility companies, in regulated and deregulated statesElectricity CompaniesTelecommunications CompaniesNatural Gas CompaniesPipeline CompaniesWater & Sewer Companies InfrastructureRefineries Government Facilities and Military Bases Appraisal for these assets is unlike general business or real estate appraisal. These assets present special appraisal problems and therefore, the purpose of such appraisals is unusual.  They often involve a combination of assets, real property, personal property, and business intangibles.  Federal Appraisal LLC is a multi-disciplined team of real estate, business, and personal property appraisers, who have extensive experience working with other professionals, attorneys, accountants, engineers, and others.  The applicable laws and regulations change from state to town to federal contexts.  The issues that give rise to the need for the appraisal require substantially different types of appraisals, such as appraisals for regulated or deregulated states, litigation, SEC/investor or IRS/tax reporting, and government due diligence.

Impairment Studies UPDATE LINK Impairment issues have always been important in periods of economic contraction and decline. They have recently become more important, due to the general economic condition and the recent changes to accounting procedures. In late June 2001, the FASB issued Statements No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets, substantially changed the accounting for business combinations, goodwill, and intangible assets. The new procedures may now require a separate analysis of various tangible and intangible assets and may require a valuation of tangible and intangible assets to determine the impairment for the purpose of adjusting the booked values of assets. Impairment studies are complex appraisal and consulting issues because of the need to analyze several levels of value. The impaired assets may include significant business value, and other intangibles. The overall asset value as well as the value of components of the overall asset must be determined. Furthermore, the values must be reconciled. Federal Appraisal provides expert impairment studies in compliance with the latest accounting procedures. Federal Appraisal, LLC provides cost effective, USPAP-compliant impairment studies that are certified by MAI’s and ASA’s. See Business Valuation/Asset Type for more.