Purchase Price Analysis: A Vital Step to Tax Advantages and Better Cash Flow for Real Estate Transactions

By conducting a thorough purchase price analysis, new building owners can properly classify assets for tax purposes, benefiting them with deferred taxes and improved cash flow. Given all the variables that accompany the purchase of an existing facility, undergoing an analysis is critical. This paper provides key insights that can help ensure a purchase price analysis delivers value and withstands IRS scrutiny.