Authoritative Allocation Method™

Our approach recognizes the statutory mandate of most states that intangible assets are not taxable for transfer tax or property tax purposes. Recently, court proceedings have agreed.¹ A significant portion of a commercial property’s transaction value may stem from nontaxable elements such as, but not limited to, intellectual property (brands, know-how, tradename, technology) tenant relationships, contracts in place, assembled workforce, licenses, unamortized tenant improvements, leasing commissions, and more.

Every RealAdvice appraisal allocates a subject property’s components of value across eighteen or more categories, each mathematically weighted by relative risk and discounted future value. Our Authoritative Allocation Method™ (AAM™) produces an appeal- and litigation-ready document detailing every supporting component of value. It is “authoritative” because each of its individual components and key claims are supported by irrefutable sources. The AAM complies with all current best practices, and with the Codes of Professional Ethics of both the Appraisal Institute and the American Institute of CPAs in applying the Cost, Market, and Income approaches to value assets, liabilities, and associated rates of return.