I am closing on a park this week. The title co wants an allocation of value for real estate/improvements vs personal property. The purchase price is $400K and includes 5 beater park owned trailers. Assessor currently has real estate and improvements valued at $201K. In order to minimize increase in property taxes, how should I allocate calues?
Talk to your accountant, but after you allocate a few dollars to the personal property, you may allocate the remaining to Goodwill.
You’re buying a business for 400k. There is goodwill among other things that should not be allocated as part of the closing as a means to help the county jack up your taxes next year.
Agree with @tmperrault your accountant should confirm, but would suggest you ask why 200k park value, 10k home value, and the rest goodwill be allocated to maintain status quo from a taxation perspective.