I bought a house to flip in 2014. Things dragged on and I still own it. I put part of the house in service as a rental in 2019 so I am adding the property for 2019. The 2014 tax valuation of the land was $26,500 and of the building was $95,900. I paid $22,800 for the entire thing. Of course for that price the building was unlivable and in reality somewhat worthless. I put $140,000 in it and $10,000 in refi costs partway through. I entered the tax value of the land as $26,500 but what do I put for the value of the building? Do I put $0 or the $95,900 town tax value or the $140,000 I put in it? I am thinking the refi costs and cost to get it livable would be entered under assets and get depreciated. Thank you for any help you can give me.
