I have a client that purchased a horse boarding business. It includes a house and 2 barns. How do I determine what part of the purchase price is for the barns?
Thank you
Thank you
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Contact a local real estate agent with knowledge of property and ask him for an educated guess. Be sure to back out land value first.This post is for discussion purposes only and should be verified with other sources before actual use.
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It should be in the buy/sell agreement. The buyer and seller are generally required to file Form 8594 so they have to agree on the purchase price allocation.
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the property tax documents usually list improvements separately. OR the appraisal statement.Comment
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A starting point is to see the breakdown on the county assessor office. They will have valuations on the barns, land and the house. They may not be accurate but might lead you to finding a percentage of the whole to determine each piece.
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