Case Study: DFW Multi-Family

⬤ 01. Challenges

Assessing Market Value and Tax Implications

In the thriving US multi-family real estate market, property transactions often rely on future income projections, raising questions about the validity of arms-length transactions and the correlation between the purchase price and assessed value.

While certain states have rigid assessment policies, the market value remains negotiable for tax purposes. Our client acquired a property for $6,600,000, prompting the need to establish the true market value and negotiate a fair tax assessment.

⬤ 02. Approach

Formulating an Obsolescence-Driven Strategy

While certain states have rigid assessment policies, the market value remains negotiable for tax purposes. Our client acquired a property for $6,600,000, prompting the need to establish the true market value and negotiate a fair tax assessment.

⬤ 03. Solution

Securing Tax Savings and Establishing Baseline Value

Through the implementation of our unique strategy and skillful negotiation, we successfully reached a final property value of $5,000,000, resulting in substantial tax savings of $51,000. This outcome not only provided immediate benefits but also established a new baseline value for future years, leading to continued tax savings. Delighted with the outcome, our client expressed satisfaction and engaged our services for ongoing tax management, reinforcing their commitment to maintaining a fair yet aggressive tax position as they expand their property portfolio.

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