Hey Mtechgunman, I didn't think about this when you asked about taxes but here is a good example of something we just passed on last month.
The photo of the house below is where we planned to move my company. I own an Advertising Design firm and we were presented this house that was owned by the local historical assocation. The price tag wasn't bad and it had the room we needed.
Although the house itself needed much work and we were prepared to pour much capital into it to bring it code and make it useful, guess what killed it?
Taxes. The property taxes on this crippled our bottom line. When you added everything we would sink into it, the tax burden alone made the project infeasible. Even if we took a few tax batement programs (which take so much time for approval) the project wasn't attractive because of the huge millstone around our neck called taxes. What was funny is when we asked the tax department about value, they appeared just just make up a number. I couldn't figure out what extra services I was going to get for such a steep price tag.
Now we could have purchased it and moved our hourly rate up to cover it but we think a few clients would have walked over the sticker shock. So, because of the taxes on this effort, we couldn't find a comfortable balance for my company.