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Power Member
Group: Forum Members
Last Login: 3/12/2011 12:58:57 PM
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| I've been waiting for the appraisal to complete a 706. It arrived yesterday with some flaws. It does not identify that the owner of the property is an LLC, it says the highest and best use is the way its currently being used but determines a value based upon land sold to developers for apartments and single family homes, the *comparables* are all in the county where the appraiser is located instead of in the adjacent county where the property is located and some other problems. When the LLC was formed, the same appraiser was used. She did an analysis of discounts available when less than 100% of the property was transferred and that appraisal was used to support gifts of the property. Would you suggest that we go back to square one and hire a new appraiser (the attorney likes this one and may balk) or try to get someone who can use the appraisal as a value for the land, consider the other LLC assets (100k of cash) and do a discount analysis of the LLC? 
Mary Kay Foss
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| i would first call the attorney and review the concerns that you have- it does sound to me like you need a new appraiser. i always view those who represent the client as a team, and try to work out differences. in the end, you are the preparer and have to be comfortable with the info. if you are not, you have to resolve that- and hopefully you can do that with the attorney.
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Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
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| weird... i thought i was logged in - when i posted the above. i am logged in now and it wont let me edit to add my name to the above, so maybe this will do the trick???
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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M K -
IMHO, a defective appraisal is a defective appraisal. If you can't defend it, don't use it.
Terry Seiberlich, CPA CITP
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Member
Group: Forum Members
Last Login: 2/16/2006 1:40:31 PM
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I would suggest that you first contact the appraiser and explain your concerns. Correcting the name of the owner of the real estate is a very simple correction. Additionally, explain your comp concerns. There may be a good explanation, like those are the best comps available for the type property, or the comps are supplemented with an income approach which mitigates the differences. If there isn't a good explanation, then ask the appraiser to reconsider her position and re-work the appraisal if necessary. You can always hire a new appraiser as a last resort.
Jeff Wolpin, CREA, CCRA, CBA, MBA
Accredited Business Appraisals.
bizvalu@earthlink.net
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Member
Group: Forum Members
Last Login: 1/21/2007 6:22:16 PM
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| You need a competent appraiser. The comps are not comps. I suspect the attorney used the cheapest appraiser around - a common mistake as the 2nd/3rd reports, at the end of day, cost you more than having a competent, qualified, knowledgable professional handle from the onset. I can assist you - please email/call at your convenience Best, Steve Kerhart MAI CCIM ASA CPA 949.221.0967 CELL 949.221.0967
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