Ok, let’s make sure I understand this correctly
first, the original home that I built in 1999, but lost in a fire in 2014 is what I base the current cost basis or value of the home for depreciation? If my original cost was $450,000 for me to build my original home, and I was paid $560,000 by my insurance company, I completely ignore the $560,000 number and go off of the $450,000 it cost me to rebuild my home?
second, for the cost basis of the land that was given to my wife by her grandparents, that was purchased for $1 love and interest, and was most likely obtained from the federal government over 150 years ago as some form of treaty settlement is yo be given some form of meaningful value? Should I put down $10,000 instead of $0 for the cost basis of the land?
if my original home that I lost in a fire was built in 1999, and would have been 25 years old today, would the depreciation of 27.5 years leave only 2.5 years remaining to depreciate the value of the original home?
not sure if this all makes sense?
