Purchase price allocation is crucial given that land is not depreciable, while the rates for other assets vary from 2.5% to 10% or more
Purchase price allocation is crucial as land is not depreciable.
For property acquisitions which are structured as assets deals, we may perform a purchase price split of the property components in order to provide the purchaser with an asset schedule after acquisition. The benefit for the investor is usually higher tax depreciation of the property acquired and proper settlement of property taxes in Poland. The purchase price split could be based on a number of sources of information, e.g. valuations, fixed assets register of the seller, or any documents relating to the construction of the property for relatively new buildings.