Investment Property
I have purchased a piece of investment property and I have been asked what the value of the land versus the value of the building. What is the best way to determine this? Are they looking to depreciate the value of the building, or what is the purpose of this?
Permalink Submitted by Alan - IRA critic on Mon, 2021-10-11 15:47
Who is asking for this info, tax preparer, assessor, insurance company?
Permalink Submitted by Jennifer Poole on Mon, 2021-10-11 15:59
My CPA.
Permalink Submitted by Alan - IRA critic on Mon, 2021-10-11 16:35
Then he needs the breakdown for the depreciation schedule. Only the improvements on the land can be depreciated, not the land value. If there was an appraisal done fairly close to the purchase date, that would be the best source, otherwise unless the tax assessor’s records are known to be questionable, you could provide the CPA with the % breakdown on the assessor’s records or most recent property tax bill.