Property Tax Appeal
Benefits
•Enhanced Cash Flow
•Increased Asset Value
•Improved Debt Coverage Ratio
•Reduced Expense for Tax Administration
Property Tax Services
•Tax Appeal Management
•Property Tax Due Diligence
•Negotiation with Taxing Authorities
•Multi-State Property Tax Portfolio Analysis
•Tax Analysis for Site Selection Comparisons
•Valuation Analysis/ Expert Testimony
A successful tax appeal is founded upon application of valuation principles. Engineered Tax Services employ a uniquely effective approach to the tax appeal process incorporating a broad based valuation experience in conjunction with our cost segregation expertise. In this manner, the detailed cost analysis offered by cost segregation methodology enhances both the reliability and accuracy of the valuation process which is critical to a successful tax appeal. Our cooperative tax consulting services are delivered in the context of a team approach wherein we represent our clients’ best interests. Our team of professionals include attorneys, appraisers, engineers and environmental consultants as may be warranted on a case by case basis and dictated by applicable state law.
As illustrated below, property taxes are generally considered one of the highest fixed operating costs associated with the ownership of commercial real estate. Therefore, real estate taxes have a significant impact upon net income, property value and investment performance.
Insurance 6%
Administrative 13%
Security 5%
Grounds 2%
Utilities 19%
Maintenance 30%
RE Taxes 30%
Janitorial 10%
The example below illustrates the power of property tax reduction in the creation of asset value. Based upon an 8% capitalization rate, a reduction of $200,000 in annual property tax results in an increase of $2,500,000 in property value.
Our services go beyond the basic reports. We assist in implementing and educating our clients on the tax strategies which are important considerations when embarking on engineered studies which include:
- Abandonment Issues
- 1031 and 1033 Exchanges
- Expertise in 481 adjustment calculation and preparation of 3115 Forms
- Estate Taxes
- Partnership 754 step-up elections
- Net Operating Loss situations (Planning to minimize passive activity losses)
- Lease tax strategies
- IRS 179 deductions
To find additional information related to Industry News regarding our services, please find the links below to websites with additional resources:
Cost Segregation Audit Technique Guidelines as published by the IRS
Resources
Before Appeal
NOI
$10,000,000
$800,000
$-
$4,000,000
$8,000,000
$12,000,000
After Appeal
Value
$12,500,000
$1,000,000
$2,000,000
$6,000,000
$10,000,000
$14,000,000
>>> Discover Powerful, yet underutilized tax-saving strategies for Commercial and Investment properties
2007-2010 Engineered Tax Services. All rights reserved
NOTICE: To ensure compliance with Treasury Regulations (31 CFR Part 10, §10,35), we inform you that any tax advice contained in this website was not intended or written by us to be used, and cannot be used by you or anyone else, for the purpose of avoiding penalties imposed by the Internal Revenue Code.
