Asset Allocation: Tangibles vs. Intangibles

As a follow up to a previous post, those keeping track of the debate on allocating tangible and intangible assets for the purpose of real estate taxation may find this article interesting. In summary, the article suggests that methods used to allocate the value of the real estate that fail to account for “return on” as well as “return of” capital investments are less credible. On balance, however, the article also notes the inadequacies of simply relying on a residual method for calculating intangibles. Many thanks to Glen Katz, part of the appraisal community intelligentsia, for pointing me in the direction of the article.