Embedded Software Valuation
Embedded software is everywhere. It is in equipment like scanners, milling machines, lathes, sorters, medical equipment, even telephone systems. And that software generally has favorable tax treatment.
Software is generally tax exempt in states that levy a business personal property tax. This exemption is a net boost to the bottom line: it lowers the effective cost of equipment and increases return on investment.
The problem is that many of today’s vendors do not itemize the software’s cost when they sell you the equipment. And traditional tax providers do not have the proper foundation to value embedded software in accordance with appraisal standards.
Consequently, many companies do not realize these savings opportunities because they cannot quantify the software cost. This issue costs companies millions each year. We can help.
We are a leading software appraisal firm—so we know how to find and value your software deductions.
We also have the proper foundation to defend our appraisals in strict accordance with federal appraisal standards. In fact, we authored the first authoritative paper on how to value embedded software and the first in-depth paper to take a critical eye on the current tax treatment of software for state and federal tax reporting purposes.
Ready to see it in action? Visit our Industries page to see what industries and clients we have worked with!
Find out what we can do for your company. Contact us for more information.
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