Hello,
I'm a bit stuck. I am trying to add to my basis the costs of a renovation to my rental property prior to placing it into service. I am using the property tax land/building allocation percentage from the previous year. This assessed values do not take into account the cost of the improvements, so when I enter the cost of the improvement the depreciable basis is reduced according to the allocation percentage from my property taxes. This doesn't seem right - shouldn't improvements to the building be fully depreciable?
I note that the in TT Premier interview dialogue it states: "Your property tax bill may not show reliable assessed values if you've recently purchased a newly built house of made improvements to the property. If your assessed values don't reflect the full value of improvements to your property, you can still use the assessed land value."
Does this mean that I can add the cost of my capital improvement (renovation) to the building value from my property taxes on the "Enter Property Tax Values" screen so that the entire cost of the renovation is depreciated?
