Allocating Purchase Price to Real Property vs Goodwill


#21

I linked my accountant to this thread as we were working to establish basis on last years purchase. And based on his professional feedback , we were able to establish what we felt comfortable with and substantiate should there be an issue.

I wont take this project on at this time :slight_smile:


#22

In New Mexico, property taxes are based on 1/3 of the full market assessed value. Vague terminology, but essentially this is whatever the assessor considers the FMV which includes goodwill in addition to land and improvements.

How do your states determine the assessed value?


#23

In Texas our county uses pixie dust, and a proprietary algorithm based on squirrel mating calls to determine the assessed value of our properties.

I have successfully sued the county for one of my commercial properties, and it’s amazing how you get a 3rd party outside that county to look at the situation and see the whole thing is a fraud. I got a 40% reduction on my assessed value. Then the county then issues you a 1099 for the re-imbursement check. You literally cannot ever fully win.