When you engage the help of a professional equipment appraiser, you might wonder why they need to know the intended use of the appraisal.
Understanding the intended use is necessary to determine the level of reporting and type of valuation to use.
Regarding the level of reporting, different amounts of detail are required to meet certain uses of an appraisal report. For example, if the report is to be used with the IRS for a donation, certain details must be included in the report that aren’t otherwise necessary.
The intended use also matters when the appraiser selects the type of value to use. In some cases the replacement value is valid, in other cases it might be the fair market value.
Potential intended uses include property tax appraisal protests, litigation, sale of property, and insurance claims.