Dears,
I use TT Premier 2019. I'm calculating the depreciable basis for my overseas rental property. The purchased price includes land, but I don't know what's the portion of the building. I tried to use the property tax bill to figure out. For example, the purchased prices are 500,000. And the property tax bill shows taxable house value is 5,000. and the taxable land value is 65,000. (Somehow the total is way less than 500,000.) How do I put the depreciable basis?
a. Just put 5,000. (But this is incredibly low)
b. I use a portion. House value is around 7% of the total value. So I put 35,000 for the depreciable basis?
Another question, I started to rent out the property since 01/01/2016. But I forgot about the depreciation. (I used TT for the past few years) So I plan to start to put depreciation this year and put "Amount of Depreciation Taken in Prior Years" to be "0". It seems TT will calculate the depreciation divide by "37 years" instead of "40 years". Does that imply the depreciation has been smoothly distributed evenly to the following 37 years?
So I don't need to do any corrections for the past 3 years?
Please help~
Thanks a lot!!
