Property Taxation - Corporate Affiliation


Problem

Your installed base of corporate computers is growing. Some of these assets are losing fair market value more quickly than the depreciation schedule of the taxing authority. You are thus being over-assessed for ad valorem tax purposes.

 

Analysis

Corporations and tax authorities are in a high-stakes battle over the accurate fair market value of computer assets. Many of these cases can reach a negotiated settlement by presenting a suitable valuation document. These forensic appraisals may ultimately end up in the courtroom with the outcome dependent on the expert and the quality of the appraisal report.

 

Solution

An asset-by-asset appraisal will provide the most reliable estimate of value for a particular asset, but where the number of assets is large and time and/or budget is limited, a mass appraisal approach can reduce costs while maintaining high standards of value reliability. The valuation process must comply with USPAP.The outcome of any dispute largely depends on the expert selected, therefore your selection criteria is essential.



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Visit our Publication pages for related information such as:

Case Study #722: "Contesting Assessments of Computer Property"

Case Study #723: "Why Tax Court Rejected Computer Price Guides"