HOW IT WORKS

How to Reduce Property and Transfer Tax on a Commercial Purchase, Before Closing

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.

The Problem We Solve

Most commercial buyers pay property and transfer tax on more than the real estate they bought.

The price of an operating property includes intangible value, like in-place leases and the business itself. In many states, the recorded price sets the transfer tax at closing and becomes the starting point for your property tax assessment. Separating the intangible value before closing keeps it out of both.

Your Engagement From Offer to First Tax Bill

Our team of experts handles each phase, from the letter of intent (LOI) to your first tax bill.

01

TRANSACTION

Send us the deal

Share your deal documents as early as the LOI. We’ll send a free ProperTax Estimate™ showing your savings at closing and over five years, with no obligation to go further.

02

VALUATION

We prepare your ProperTax Appraisal™

An MAI appraiser and a CPA/ABV business valuation specialist each sign one reconciled report. It’s typically delivered about ten days before closing.

03

CLOSING ASSISTANCE

We help you close with the right numbers

Before closing, we review the settlement statement and any required state forms, so the allocation carries through to the deed and the transfer tax.

04

FINALIZATION

We stay with you through your first tax bill

After closing, we confirm the sale recorded correctly and review your first tax notice. If an appeal is needed, we handle it at the administrative level.

What Does a Commercial Purchase Price Include?

Every purchase price holds up to three kinds of value. Each is treated differently for tax purposes.

Which of these a purchase includes, and how much, depends on the property and the deal

Why the Work Holds Up

Appraisal, law, and accounting are all regulated professions, and our team holds credentials in all three. Every report applies five or more of the seven recognized appraisal methods and reconciles the real estate and intangible value into one number. The Florida Department of Revenue approved our methodology in 1991, and courts upheld it in the Disney rulings in 2018 and 2020.

Does This Affect My Lender or My Federal Taxes?

No. The ProperTax Process applies only to state and local tax (SALT). It doesn’t change your lender’s appraisal or your federal tax basis, and it’s separate from cost segregation, which is a federal income tax strategy.

Questions About How It Works

What does a property tax consultant do?

A property tax consultant helps property owners and buyers pay the correct state and local taxes on their real estate. At RealAdvice, that means separating intangible value from taxable real estate before closing, then supporting the result through the first tax bill.

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.

Yes. An appeal challenges a value after it’s set. RealAdvice sets a supported value before closing,
and if an appeal is still needed, we handle it at the administrative level through the applicable tax
year.

No. The ProperTax Estimate is free, and there’s no obligation to move forward.

Yes. Clients in 49 states can benefit, depending on each state’s property and transfer tax rules.