Cost still doesn’t equal value.

Advantax helps save regional distributor over $50,000 in real property assessment



Advantax reviewed the real estate value for a new distribution warehouse in the Midwest, and then submitted the findings to the assessment authority who insisted the value of the property should be valued closer to its cost.


Advantax prepared to file an appeal using the cost approach to value. A detailed asset listing of the real estate was secured, and subsequently adjusted for misclassified items and non-value added expenses. Once these adjustments were completed, Advantax applied appropriate physical depreciation to the different ages of construction and applied a shorter life to depreciate yard improvements. Other depreciation considerations were made for obsolescence as well. The Advantax actual cost analyses concluded a higher value than the conclusion using the market comparables but remained close enough for the different approaches to support each other.


Advantax filed an appeal and reached a settlement agreement with the assessment authority, resulting in tax savings of approximately $50,000.