Accounting, Tax, or Audit Federal Appraisal specializes in appraisal for accounting and tax issues. Whether your accounting/consulting firm is working on tax, audit, management consulting issues, or VFR/Investor Reporting, Federal Appraisal, LLC offers expert solutions. Our practice includes qualified real estate appraisers with designations by the Appraisal Institute (AI), the American Society of Appraisers (ASA), and the Royal Institution of Chartered Surveyors (RICS). Valuation for Financial Reporting Federal Appraisal, LLC is prepared to assist clients with Valuation for Financial Reporting. As the financial reporting industry continues to move toward global standards, it is relying less on historical cost-based accounting on the balance sheet and moving more toward a market based, fair value system. Statement of Financial Accounting Standards 157, Fair Value Measurements, defines fair value as: “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” As Valuation Specialists, with strong backgrounds and certifications in valuation and financial reporting we are uniquely qualified to assist your company or clients with the following Valuation for Financial Reporting needs using generally accepted appraisal standards. cost benefit studies feasibility studies highest and best use analysis zoning studies rent studies property utilization studies market analysis forecasting and trend projections property tax consulting verify managements assumptions and estimates identify and test valuation techniques validate inputs for valuation techniques Tax and Audit Issues and Solutions Federal Appraisal, LLC has solutions for the following tax issues impacting real property: Real and Personal Property Taxes Purchase Price Allocation Studies Cost Segregation Studies transfer taxes gains taxes income taxes Estate & Gift Appraisals and Consulting International Financial Reporting Standards (IFRS) Some of the audit issues facing real property that Federal provides solutions for include: Impairment Studies corporate structuring management audits and consulting benchmarking and best practices consulting 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: Property Tax Assessment and Appeal Appraisal useful life studies fixed asset registers special value reportingssynthetic leasessale-lease backsstructured leases Impairment Studies audit support consulting FASB Standard, Leases, ASC 842 Starting in 2019, public companies will need to report the value of operating leases on balance sheets. The impact to balance sheets could be significant. While the calculations of value for many such leases do not require the assistance of appraisers with special knowledge, some certainly do. The reporting may require net present value calculations using market terms. Furthermore, while addressing ASC 842, accountants may wish to address leases with above or below market terms (intangible assets or liabilities). Federal Appraisal can provide these services. Other Valuation Services Federal Appraisal, LLC also provides a variety of valuation services that relate to potential appraisal needs, including: accountingFASB 141R – business combinationsFASB 142 – goodwill and other intangiblesFASB 144 – impairment or disposal of long lived assetsFASB 133 – derivative securitiesFASB 123R – options/share-based payments FASB Interpretation No. 45 – debt/guarantees taxIRC Sec 1060 – purchase price allocationIRC Sec 1245/1250 – cost segregationIRC Sec 409A – stock based, nonqualified deferred compensation plansIRC Sec 108 – debt cancellationIRC Sec 382 – net operating loss limitationsIRC Sec 482 – transfer pricingIRC Sec 367 – reorganizationsIRC Sec 304 – deemed dividendIRC Sec 338 – foreign tax credit planningIRC Sec 861 – allocation of interest expenseIRC Sec 165(g)(3) – worthless stock deductionsForm 8283 – Noncash Charitable Contributions (Gift & Estate Tax) gift and estate tax valuation of closely held restricted stock otherasset-based financinginsurance appraisal services ad valorem opinion servicesfairness opinion solvency opinion Special Valuation Issues in Tax and Audit Federal Appraisal, LLC has solutions for the following uncommon issues impacting real property: self-managed 401K 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 casualty/losses charitable contributions/gifts comfort letters damages estimates depreciation & cost segregation property due diligence services easements employee stock options exchange basis fairness opinions foreclosure/recapitalization gift tax appraisals high basis / low value reorganization impairment studies incorporation increased basis in property prior to disposition insurance claims Lease Auditing & Analysis landmark easement contributions litigation support & expert testimony merger & acquisition valuations and consulting portfolio & mass appraisals preservation/conservation private REIT’s real property tax reviews REIT issues sale/lease backs & LILO’s tax estimations & projections tax shelters valuation management & audits valuation/real estate study reviews Management Consulting Issues and Solutions for Accountants Federal Appraisal provides user-defined scopes of services and agreed upon procedures services relating to accountants. Securities and Exchange Commission (SEC) Federal Appraisal, LLC provides the real estate appraisals and valuation reporting support required by the SEC. See our SEC page for more information. Internal Revenue Service (IRS) Federal Appraisal, LLC provides the real estate appraisals and valuation reporting support required by the IRS. See our IRS page for more information. Our Clients have chosen Federal Appraisal because we: Understand the key tax and accounting issues both domestically and internationally Are an independent firm with no Sarbanes-Oxley issues Deliver products and services accepted by the SEC, IRS and both the Big Four and regional accounting firms Federal Appraisal, LLC is not a law firm or an accounting firm. As such it does not offer legal or audit opinions. Federal Appraisal can obtain and/or manage those services for its clients, and Federal Appraisal can offer referrals to law firms and/or accounting firms for such services.

Small, Mid-sized Businesses Until the creation of Federal Appraisal, LLC, small and mid-sized companies had difficulty finding the real estate and business appraisal and consulting services that they needed. Today, small and mid sized companies can turn to Federal Appraisal, LLC for all of their appraisal and consulting services. Federal Appraisal services small and mid-sized accounting and consulting firms, law firms, corporate real estate groups, private and public investors, developers, and management companies. Federal Appraisal, LLC also services private owners. We provide the highest level of service, while we fully recognize the special needs of small and mid-sized companies to control costs. It is precisely because of this need that Federal Appraisal was created. Our firm was organized specifically to control the costs of our services and still maintain the highest quality of professional service. Our business model enables us to offer competitively priced services, over a greater geographic area than most of the so-called national appraisal firms, and over a greater number of issues than the local market expert. Business Appraisal / Valuation General Services for Corporations Going concern Damages and lost income Good will & intangibles Mark to market Liquidation Real Property Valuation A Special Note to Small and Mid-sized Companies Now that you know that such services are available to your small and mid-sized company, we hope that you agree that prudent management dictates the use of such services. Real estate often represents the single largest investment for a company. The consequences of a bad real estate investment, acquisition, or lease can be fatal to a small or mid-sized company. Companies that lease their real estate are not immune to the fatal consequences of bad real estate decisions. While the cash outlay for lease in any given year may not appear significant, the total cash outlay for any longer-term lease (seven years for longer) often exceeds purchase price of real estate. Furthermore, the terms of the lease (base rent, rent step ups, rent escalations, operating expense passthroughs, real estate tax pass-throughs, utility expense pass-throughs, and other terms) can make the analysis of the lease substantially more complicated and difficult than the analysis of the sale. See our Lease Analysis and Audit page and our Corporate Real Estate pages for more information. Similarly, consultants and managers who advise poorly assume liability. Unfortunately, small and mid-sized companies can rarely afford to employ real estate appraisal and consulting professionals. Federal Appraisal, LLC eliminates the liability by supplying the services necessary to properly advise clients. Federal Appraisal is able to work with consultants and managers in either a joint venture or a subcontractor capacity. Management Consulting Issues and Solutions for Small and Mid-sized Companies Federal Appraisal, LLC provides user-defined scopes of services and agreed upon-procedures services relating to small and mid-sized companies. Securities and Exchange Commission (SEC) Federal Appraisal, LLC provides the real estate appraisals and valuation reporting support required by the SEC. See our SEC page for more information. Internal Revenue Service (IRS) Federal Appraisal, LLC provides the real estate appraisals and valuation reporting support required by the IRS. See our IRS page for more information

Business Interruption Business Interruption Consulting, Property Damages Estimates Federal Appraisal, LLC provides consulting and appraisal services to individuals and companies suffering from business interruptions and damages from natural and man-made disasters and accidents. If the loss or diminution of the use of your real estate is causing a loss in business income and/or is reducing the utility or value of your real estate, then Federal Appraisal, LLC may be able to help you recoup your losses and damages. Even tenants in damaged or reduced utility space can benefit from our services. The actual or alleged loss or damage might be from contractual breaches, environmental conditions, weather, physical damages, external-to-the-site conditions, or malfeasance/non-feasance. Federal Appraisal, LLC provides appraisals of damages, lost income and stigma for negotiations, and court testimony for or against insurance companies, property owners and defendants. Natural Disaster Assistance Fires Earthquakes Storms, Tornadoes, Hurricanes, FloodsSuper Storm SandyHurricane Harvy Hurricane Irma

Appraisal Management Federal Appraisal LLC provides appraisal management consulting, nation-wide, for multidiscipline assignments. Managing appraisals over multiple states, between various appraisal subspecialties and multidisciplinary professionals, can turn into a costly and dangerous endeavor. On the rare occasion that clients need the services of geographically diverse appraisers or other types of professionals, Federal Appraisal LLC is capable of assembling qualified appraisal teams. We regularly work with appraisers, engineers, forensic experts, specialist attorneys, and/or specialist accountants; together, we can gather appraisal expertise from around the United State and even internationally. Our reports frequently include work and opinions from non-appraiser experts, in addition to appraisal services from real estate appraisers, personal property appraisers, and business appraisers.