RealAdvice® helps commercial real estate buyers pay only the taxes that they legally owe by separating non-taxable intangible value from taxable real estate at closing. Below are answers to the questions buyers, brokers, and their advisors ask most.
We separate the intangible value in a commercial purchase price, such as in-place leases and business operations, from the taxable real estate before closing. That lowers property and transfer taxes to what state law actually taxes.
It’s value in a purchase price that has no physical form: in-place leases, contracts, brand, workforce, and the going-concern business. Most states don’t tax it as real estate.
It divides a purchase price among real property, tangible personal property, and intangible value, so state and local taxes are based on the real estate alone.
It’s RealAdvice’s four-phase method: Transaction, Valuation, Closing Assistance, and Finalization. It runs from the free estimate to your first tax bill and centers on one appraisal signed by an MAI (Member of the Appraisal Institute) real-estate appraiser and a CPA/ABV (Certified Public Accountant, Accredited in Business Valuation) specialist.
At the letter of intent (LOI) or offering memorandum (OM) stage, or before the purchase and sale agreement (PSA) is signed. Our report is typically issued about ten days before closing.
Often not. Reach out now; there is often still time before closing.
The ProperTax Appraisal™ is typically issued about ten days before closing.
Yes. State law defines taxable real property, and in most states intangible value isn’t included. You pay only taxes that you legally owe.
Yes. Courts upheld the method in the Disney rulings in 2018 and 2020, and it was vetted in federal bankruptcy court in 2022. The Florida Department of Revenue approved it in 1991.
The report is signed by an MAI real-estate appraiser and a CPA/ABV business valuation specialist, both on one reconciled report through our PairedExpert™ approach.
No. The report is restricted to state and local tax use and doesn’t change your federal tax basis.
No. The report is for state and local tax only.
No. Cost segregation is a federal income tax strategy that speeds up depreciation. RealAdvice works only on state and local property and transfer taxes, and the two can be used together.
A ProperTax Appraisal works for all commercial asset classes. Multifamily, office, retail, hotel, industrial, and data center transactions come up most often.
RealAdvice serves clients nationwide, and has applied the approach in 39 states thus far. Clients in 49 states can benefit, depending on each state’s property and transfer tax rules.
Lower taxes make your property more competitive. Tenants pay less to occupy the space, which can support rent and renewals. It also makes your cash flow more predictable.
The estimate outlines your potential savings: property tax over five years, transfer tax at closing, the effect on asset value and net operating income (NOI), and draft PSA language for your state.
No. The estimate is free, and you decide whether to go further.
Yes. RealAdvice treats all deal information as confidential, as our client agreements require. We do not disclose the names of the parties or properties involved.
Yes. Investment sales brokers often bring us in when the offering memorandum is being prepared, so buyers see the savings early.