Re: engaging in working dialog with Georgists?

On Sat, 20 Oct 2007 12:44:31 -0700, w_b_ryan@xxxxxxxxx wrote:

"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,

Lie. He is a recognized authority on taxation, and has consulted for
national governments on the subject.

but has spent his entire career
being the paid mouthpiece for the Georgists,

Lie.

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,

Lie. He said it could be _an_ appraiser's rule of thumb. In fact,
many jurisdictions that do not want to spend the money for accurate
appraisals (and are happy to accommodate fraudulent depreciation as a
favor to local landowners) use such rules of thumb.

which is irrelevant to
the concept of depreciation as used in accounting.

Wrong.

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.

Wrong.

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 <<----------- LOL!

when purchased, regardless of the
location, may be depreciated. Anything else is
fraud.

Depreciating replacement cost is fraudulent, whether or not it is
allowed by the rules. That is Hudson's point. Which you of course
lied about.

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.

But the bias is clearly to overvalue improvements.

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.

One wonders who is paying for Lyin' Ryan's lies...

William B. Ryan, CPA

LOL! Not another brain-dead, professionally incompetent, lying CPA!!

-- Roy L
.

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. ...
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  • Re: OT: House value appraisal?
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  • Re: House value appraisal?
    ... I think what is happening is that they want to be sure it is worth at ... more appraisals than not come in at or close to the actual purchase price, ... to be conservative and if the house is worth more, ... experience when that happens the appraiser feels that the selling price ...
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  • Re: Bank Appraisal - Selling Price
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