Re: engaging in working dialog with Georgists?

"If a building is sold at a higher price, its
assessment usually is raised. Suppose a property is
sold for twice the price the owner paid for it. The
local appraiser is likely to say; 'I see you've sold
your building for $2 million. Under my rule of
thumb, I appraise the land as half this value, and the
building as half, so that gives you a $1 million
dollar building.' Under this rule, the building that
was formerly priced at $500,000 can be re-
depreciated at a price that builds in this $500,000
gain. A substantial portion of the rise in site value is
treated as depreciable building value, not as non-
depreciable land-price gain."
------------------------------------------------

Hudson, who by the way is not a recognized
authority on anything, but has spent his entire career
being the paid mouthpiece for the Georgists,
feeding at the trough of their $200 million
endowments, along with four or five other
"credentialed" economists, fabricates what he calls
the appraisers' rule of thumb, which is irrelevant to
the concept of depreciation as used in accounting.
There is no such rule in appraising. Furthermore,
appraised value has only a cursory relationship to
actual market value or to the realized value when a
property is sold or purchased. The accountant in his
books must differentiate between the actual value of
the land without the building in his books, and the
purchase price of the building alone, regardless of
its location, which he may depreciate. Only the
value of the building alone, or perhaps its
replacement cost when purchased, regardless of the
location, may be depreciated. Anything else is
fraud.

For example, look at the tax roles of the Harris
County Appraisal District, which are online.

You'll see thousands of examples where the taxable
land value of properties are substantially higher
than improvements, and vice versa.

Hudson is just flat-out wrong, and seems to have
just dreamed this up, to please his employers, like
so much else that he writes.

William B. Ryan, CPA

.

Relevant Pages

  • Re: engaging in working dialog with Georgists?
    ... sold for twice the price the owner paid for it. ... local appraiser is likely to say; ... the concept of depreciation as used in accounting. ...
    (sci.econ)
  • Re: OT: House value appraisal?
    ... This site was based on the *sold* price listed at the county seat, ... and location are two prime considerations in a house, ... Market value is always up to interpretation, but if you hire an appraiser ...
    (rec.equestrian)
  • Re: return on investment of partial basement finishing?
    ... I had a stop loss order in place and sold at ... was asked about what I thought was a better investment, stocks, bonds, ... out at one price, only to buy it back later at a higher price doesn't ... aren't daily sales of cookie-cutter houses with paper-thin walls next ...
    (alt.home.repair)
  • Re: Need help on this one.
    ... William M. Klimon wrote: ... $198,000), or more recently the online dealer who sold a first of A ... sell every book for its maximum price. ... dealer William Reese for $4x. ...
    (rec.collecting.books)
  • Re: "Niel Humphreys of `Snowdon Computers is a lying incompetent cunt"
    ... I think it perfectly reasonable to equate "Working environment" to ... However "New in unopened box - sold ... buyer is expected to have some specialist knowledge and testing by the ... Remember this wasn't a fixed price sale. ...
    (uk.people.consumers.ebay)