A hotel is a running business as well as a building. 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.
Which of these a purchase includes, and how much, depends on the property and the deal. Rules vary by state.
A hotel’s brand, management agreement, and workforce are valued by a business valuation specialist, not a real-estate appraiser. Bring us the deal at the letter of intent (LOI) or purchase and sale agreement (PSA) stage, while the allocation can still be written into the contract.
Every ProperTax Appraisal™ is signed by two credentialed experts: an MAI (Member of the Appraisal Institute) for the real estate and a CPA/ABV (Certified Public Accountant, Accredited in Business Valuation) for the business value. Our PairedExpert™ approach puts both on one reconciled report, restricted to state and local tax use and typically issued about ten days before closing.
The Florida Department of Revenue approved our methodology in 1991. Courts upheld it in the Disney rulings in 2018 and 2020, and it was vetted in federal bankruptcy court in 2022.
It’s the part of the price that isn’t real estate: the brand affiliation, the management agreement, the workforce, and the going-concern income those create. The hotel industry often calls this business enterprise value. A CPA/ABV values it, and most states don’t tax it as real estate.
Usually not. Furniture, fixtures, and equipment are generally tangible personal property, which many states tax separately on their own return.
No. The ProperTax Appraisal is restricted to state and local tax use. It doesn’t change your lender’s appraisal or your federal tax basis.