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Financial Planning / Tax Strategies


Subject:  Re: Form 4562 Date:  7/13/2005  2:00 AM
Author:  irasmilo Number:  80005 of 132875

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.

Not at all. Tax assessments often bear little relationship to fair market value. It really depends on where the property is and what the local valuation practices are. For instance, here in NJ assessments are supposed to be at market value, properties are required to be reassessed when the assessment is less than 85% of market value, but often aren't reassessed until market value far outstrips assessed value.

On Long Island, until recently real estate was assessed at 1936 construction costs. Don't ask me how they assessed things that didn't exist in 1936, but they did.

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