Prices Needed

[MrsNewMat]

I need to declare my property value to the town for tax purposes. This being my first year, I need some help determining values of the machines I have.

How much this machines cost today? If you had purchased same model in past, that price would be okay too.


<font color="blue">Washer </font color>

IPSO Triple Load WE165
Maytag MAH14PD
Maytag A23CS (this are top loaders, I am not sure of the model #)

<font color="blue"> Dryers </font color>

ADC AD285
ADC AD220 (These look the same as 285 but are stacked)
Maytag D23CD (This are stacked dryers, I am not sure of the model #)


<font color="brown"> Thank you, in advance </font color>

[Duane]

Talk to your accountant. Any piece of equipment that has 5-7 years on it may not be worth very much on the books as they have already been depreciated. Depending on how you bought the business will also determine the equipments value.

New equipment will run about $100 per pound of washing capacity for a washer. (35 lb machine would cost about $3,500).

Around $4000 for stack dryers.

[MrsNewMat]

I talked to my Accountant and he's not familiar with the biz so can't really help. According to him, the way I bought biz irrelevant and I can revalue my equipment.

All of my stuff is older than 10 years. And if it's not worth anything on the book today, what should I report?

[Duane]

If your accountant is not familiar with the biz then you should start looking for another accountant. It is relevant if you borrowed against the equipment for the loan. This shows that the equipment has a value. It would be difficult to tell the tax man that you borrowed $50,000 against equipment, but for taxes it isn't worth anything.

If it is worth nothing then report is as worth nothing.

Ask your distributor for a trade in value and start from there.

[petefritz]

if you can contact the old owner, ask for thier last intangible tax statement. Then you can continue with thier numbers. I always get one at closing. ( well, since I learned I should)
If not, just make up you own numbers, the city has the previous ones anyway and will adjust to thier liking.

washers:
tops $100
Neptunes $500

35's $800
stacks $1000
singles $500

[MrsNewMat]

Thanks Duane and Petefritz.

The situation is this:

I bought cash; no loan against equipment.

Little I knew at the time of sale contract, the previous owner and his lawyer allocated 7% of the purchase price to goodwill and 93% to equipment. BUT, my accountant says that I can revalue and allocate more to goodwill.

The previous owner is not willing to give last year's numbers.

I called around and looked at the CLA Journal to see what it would cost me to buy the same equipment. Of course, some are discontinued (MAH14PD) so I asked for the price of a refurb one. Prices are close to what Petefritz is saying. When I use that price to value my equipment, it come's to 20% of the purchase price. While town may adjust to their liking, I want to be able to contest and substantiate my value.

Thanks,

[petefritz]

you may be in a better tax postion to go with the previous owners statement of 93% to equipment. Take high numbers till it adds up per machine. That works well for IRS, but the state intangible tax and city it works against you. On our returns we state the purchase price, and current value. Maybe you can do somethung in bewteen them for the state / city return, as I don't belive they are thinking all that old equipment is worth much anyway.

[RandallW]

The building I live in has an A23CS; it's at least 20 or 25 years old, so there's probably quite a bit of depreciation for it.

My guess on it's current value would be $50-$150; just a shot in the dark.