Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
1. Use the 85% of the tax assessors value of the property as the depreciable basis. I think saying the land is worth 15% and the building 85% is reasonable."

On what basis? 15% for land seems low to me for an older house. I have a reasonably well-maintained 1950s house, and the land value is probably nearly 50% of the FMV. Even or a brand new house in my neighborhhod (currently for sale) land value is probably roughly 25%.
------------------------
My "assessment" bill for all 3 of my properties shows a portion for land and a portion for improvements.

What you need to find out is what the portion was for the tax year the property was put in service as a rental. Then you have a defendable depreciation amount.

cat
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.