Real estate valuation reports for tax purposes
A market value report for submission to the tax office is usually prepared for one of the following reasons:
- Determining fictitious acquisition costs (e.g. when a property is let for the first time)
- Transfer of real estate from business to private assets
- Assessment of a possible hidden gift
Scope and methodology
The level of detail in the report depends on the purpose and value of the property. The scope includes in particular:
- Allocation between land and building: research into actual land transactions and classification of the land value through transparent additions and deductions
- Report on the remaining economic useful life: determined on the basis of the age of the building, its current condition and the future demands on the building fabric
- References in the report to literature and case law on valuation reports for tax purposes
- Valuation usually by the income approach (Ertragswertverfahren), based on the sustainably achievable rent
Recognised by tax offices and tax advisers
I greatly value my cooperation with larger and smaller tax consultancy firms that have trusted me for years, and the recognition of my reports by the competent tax offices. Every report is structured so that its reasoning, data basis and legal references stand up to critical scrutiny.