In the world of commercial real estate, taxes are an important consideration. Real estate taxes are based on the value of the property as estimated by the local tax assessor. In most cases, the assessor does a pretty good job. But in some cases, the estimate is far too high, resulting in excessive tax bills for some people and corporations. Are you … [Read more...]
Allocating Commercial Real Estate Value the “Right” Way
There is a tea party underway. But it doesn't involve a particular political party. It involves a revolt against real estate taxes levied by local taxing authorities against real estate owned by companies with national name recognition like Walgreen's, General Electric, and Brigestone. These companies contend that they're being taxed on their hard … [Read more...]
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 … [Read more...]
Commercial Appraisals for Real Estate Tax Purposes in Kentucky
Despite their best efforts, government officials sometimes get it wrong when assessing the value of your commercial real estate for tax purposes. Here's why. First, your local Property Valuation Administrator (PVA) is charged with appraising tens of thousands of properties within each county. Faced with such a task and having limited resources … [Read more...]
Tax Consulting Appraisals
I once saved a man over a million dollars in - Cold. Hard. Cash. That's real money. So...how'd I do it? Here's the deal. The client inherited from his son's estate a number of inland hotels on the Mississippi Gulf Coast. The Internal Revenue Service asserted that the value of his motels was based on the market price of corporately … [Read more...]
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