MaryK4
Expert Alumni

Investors & landlords

Your estimate sounds correct- considering the area.  With the depreciation, as long as you are reasonable and consistent in the treatment, you will have no issues- so keep good records.  By applying the land value, you are decreasing your annual depreciation deduction, which may be recaptured when you sell the property so if you use the correct percentages when you sell the property (which may change due to property values), you will calculate the correct gain.   

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"