Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Print the post  


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.