Hi,
It seems that the cost basis for the land value is computed incorrectly. I specified that land and building value from the property tax bill, and the land % comes out to be 46.5%
However, 46.5% of the original home cost (625k) is 290K.
But TT gets 299K which is 46.5 % of (Original Home Cost + Home buying fees + cost of improvements) = 643K.
This seems wrong to me. Can anyone explain? Thanks!
Just to clarify, this is the calculation Ive used for renting out 2/3 of my home. Please help me check them. Thanks!
{ [(original-home-price + setting-fees) x building-percent] + pre-rental-renovation } x 2/3
