External Obsolescence in Property Tax

Description

In an economic recovery that's moving at a glacial pace, property tax specialists can help their companies cut taxes on real and business personal property by leveraging external obsolescence concepts, i.e. market-driven depression of the value of your business and its long-lived assets.

The principles of applying factors, such as a downturn in market pricing or a new category of equipment, to the worth of a company's land and equipment are relevant to the cost, sales and income approaches to valuation. Company tax professionals must stay current on their usage with assessors.

Property tax specialists must make viable, quantitative analyses of factors like marketplace transactions, the impact of willing buyers and sellers, current market capitalization rate trends, and cost approach adjustments — and present the analysis to assessors' offices in compelling fashion.

Listen as our panel of veteran property tax advisors equips you with the latest concepts you'll need to effectively apply external economic obsolescence concepts within any valuation approach you use, in order to justifiably reduce valuations and taxes on real or business personal property.

Outline

1. General principles of external obsolescence
   1. How those principles are applied in the cost approach
   2. How those principles are applied in the sales approach
   3. How those principles are applied in the income approach
2. Factors that can lead to external obsolescence
   1. E.g. availability of marketplace data
   2. Willingness of buyers and sellers
   3. Current market cap rate trends
   4. Cost approach adjustments
3. Relevant accounting guidance
   1. E.g. FAS 144
4. Making an effective analysis to assessment offices
   1. Anticipating and countering resistance to using economic obsolescence

Benefits

The panel will examine these and other critical areas:

• Identifying all possible factors, such as sources of sale data, buyer attitudes and market cap rates
• Distinguishing external obsolescence from other forms of obsolescence — from classification and quantification perspectives.
• Anticipating assessors' resistance and responding to arguments that GAAP doesn't recognize economic obsolescence or that depreciation encompasses all forms of obsolescence.
• Applying on-point accounting guidance based on FAS 144 and other relevant pronouncements.

Upon completion of this seminar, an attendee will be better informed and prepared to construct and present an economic obsolescence case to assessors that supports a reduction in valuation and property taxes.

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

NASBA CPE Sponsor

Strafford is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417 or by visiting www.nasba.org.

CPE Credit

Strafford is a NASBA CPE sponsor and our live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.