When clients use bonus depreciation or a 1031 exchange, accurate fair market value (FMV) becomes critical. These strategies rely on valuation data that is current, defensible, and well‑documented.
Here are the essentials:
- Bonus depreciation depends on accurate FMV for basis, placed‑in‑service timing, and audit support.
- 1031 exchanges require strong valuation documentation, especially for boot calculations and like‑kind qualification.
- Maintenance status, upgrades, and engine programs can shift FMV far more than depreciation schedules suggest.
- Unsupported FMV increases audit exposure and can lead to adjustments or recapture.
To help, I’ve created a quick whitepaper outlining the valuation points CPAs should review:
“Bonus Depreciation & 1031 Exchange Valuation Guide”
Schedule a free consultation anytime, and we can walk through your client’s situation together. I’m always available to help confirm FMV.